RBC Capital starts coverage of Trustpilot at 'outperform'

(Sharecast News) - RBC Capital Markets initiated coverage of Trustpilot on Monday with an 'outperform' rating and 290p price target. "Trustpilot has turned first-mover advantage into strong market positions in its key regions and is executing on its shift to higher value, stickier Enterprise customers," the bank said.

"This drives mid-teens top-line growth (circa 6% CAGR FY24-27e), underpinned by Net Dollar Retention of circa 100% post the package migration, whilst our proprietary analysis suggests a long runway of potential embedded growth in the platform."

RBC said Trustpilot will be a net beneficiary of the proliferation of AI, playing an important role in protecting consumer trust.

"We value TRST on 4.5x FY27e EV/Sales, driving a 290p price target, justifying an outperform recommendation," it said.

At 0900 BST, the shares were up 3.1% at 220.40p.