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(Sharecast News) - Trustpilot shot higher on Friday as JPMorgan reiterated its 'overweight' stance on shares of the review platform.
"With the shares having risen more than 30% on the day of the FY25 results, they are now -13% from recent highs, partly as a result of a recent block listing," the bank said. "We think this presents an attractive entry point into a uniquely positioned AI winner set to potentially compound earnings and free cash flow well above sector-average rates."
JPM said its model implies that Trustpilot could grow its adjusted EBITDA and free cash flow (less share based compensation) at a compound annual growth rate of more than 30%.
"This growth rate is well above the sector average across our software coverage, albeit Trustpilot is growing from a less mature base," it said.
"Notably, our model assumes that Trustpilot grows its revenues at a mid-teens percentage rate over the medium term, despite Trustpilot recently achieving closer to a high-teens percentage.
"Our research indicates that growth should be well supported through continued consumer AI adoption: despite its relatively nascent scale versus other widely cited sites (e.g. Wikipedia, Reddit, etc.), Trustpilot was the fifth most cited domain globally on ChatGPT through January 2026.
"These network effects should also benefit margin expansion."
JPM said Trustpilot is a clear AI winner that offers a unique value proposition to both customers and end users.
"With our model implying a circa 5% 2027e FCF (less share based compensation)) yield, we see a positive balance of risk/reward to Trustpilot's current valuation, driven by continued execution, particularly in its less mature North American market," it said.
JPM said that applying typical high-growth SaaS price-to-earnings and FCF multiples to its 2030 illustrative estimates implies that Trustpilot's shares could trade close to around 5 by Dec-29, offering more than 100% potential upside to current levels.
At 0955 BST, the shares were up 4.9% at 222.40p.
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