Berenberg slightly raises target price on Trustpilot

Analysts at Berenberg slightly raised their target price on reviews platform operator Trustpilot from 260.0p to 270.0p on Wednesday following the group's interim results earlier in the morning.

Trustpilot said group bookings grew by 19%, while revenues increased by 17%, adjusted underlying earnings surged by 86% and adjusted free cash flow came in at $5.9m.

However, Berenberg said the key new information was that Trustpilot's FY24 outlook has now been upgraded, with management now expecting adjusted EBITDA to be at the top end of market expectations of $18.0m-22.0m).

"Current FY24E adjusted EBITDA consensus is at $20.0m, so we would expect a circa 6-10% upgrade," said Berenberg, which reiterated its 'buy' rating on the stock.

Additionally, the German bank noted that a new £20.0m share buyback has been announced and, as a result, Berenberg increased its FY24 adjusted EBITDA forecast by 6% and its FY25 adjusted EBITDA and EPS forecasts by 5% and 11%, respectively.

Reporting by Iain Gilbert at Sharecast.com