Trustpilot Group PLC (LSE:TRST) has been through its awkward teenage years. The online reviews platform, long accused of being all promise and no profit, has found a steadier rhythm as it shifts towards larger, stickier corporate customers.
RBC has taken notice, initiating coverage with an 'outperform' rating and a price target of 290p, about a third above the current 214p.
The bank’s analysts think Trustpilot has turned its early-mover advantage into a genuine business moat. The company’s focus on “Enterprise” clients, those spending more than $20,000 a year, is starting to pay off.
These accounts now make up 9% of the customer base, compared with 5% two years ago, and they deliver much better retention and scope for upselling.
Trustpilot’s model is simple enough. Consumers use it for free to post and read reviews, while businesses pay for analytics tools and the right to display Trustpilot’s familiar star ratings.
The average business spends about $10,000 a year, but Enterprise clients pay roughly $25,000 for richer data and benchmarking. RBC argues that is still cheap: the cost is less than half a mid-level marketing hire or a single Bloomberg terminal.
The attraction for big brands is clear. Reviews boost search rankings and consumer confidence. HSBC, Barclays and Boots are among the latest names to sign up.
Meanwhile, Trustpilot’s “TrustLayer” product, offering access to its 330 million reviews via an API, is drawing interest from investment firms and consultancies such as Advent International and Felix Capital.
RBC sees annual sales growing 16% a year between 2024 and 2027, with margins improving from 11% to 17%. The analysts forecast earnings before interest, tax, depreciation and amortisation rising at a 35% annual clip, helped by stable customer retention and modest pricing power.
The rise of generative AI, which blurs the line between fact and fabrication, could play into Trustpilot’s hands. As the note puts it: “Trustpilot will be a net beneficiary of the proliferation of AI, playing an important role in protecting consumer trust.”
The platform already works closely with regulators to combat fake reviews and uses AI tools of its own to weed out fraudulent content.
The shares (up 2% on Monday at 218.2p) have de-rated by half since February despite earnings upgrades, leaving them on 3.7 times expected 2026 sales. RBC’s target multiple of 4.5 times implies room for a rerating.
After years of being lumped in with flaky tech stocks, Trustpilot looks to be growing up... and in a world increasingly run by algorithms, its brand of human feedback might prove more valuable than ever.