Deutsche Bank starts coverage of Trustpilot at 'buy'

"Ultimately, the value of Trustpilot's platform is underpinned by the legitimacy placed on its reviews, which we feel is supported by its open-ended platform allowing for independence, the scope of its proprietary data (circa 300m reviews), and the multitude of content integrity measures," the bank said.

"Since reaching adjusted EBITDA break-even in FY23, Trustpilot's momentum continues to accelerate due to three key self-help measures: (i) an increased sophistication within its pricing/packaging models, (ii) re-focused Google Tag Manager strategies in its less mature regions, and (iii) a focus on cost discipline," DB said.

"Combining the above with unit economics benefits underpins our 15%+ per annum top-line growth and +200bps per annum adjusted EBITDA margin expansion between FY24-26E."

Deutsche Bank said it views near-term execution risk as low due to high revenue visibility and a high-quality management team/board.

At 1310 GMT, the shares were up 4.6% at 268.75p.