Trustpilot Group PLC (LON:TRST) is tapping into a US$50bn market opportunity of which it has captured only 0.2% despite being a market leader.
But as e-commerce trends continue it’s well placed to capture a larger share, according to Peel Hunt, especially in North America as it is behind the maturity curve of the UK.
READ: Trustpilot gets five-star rating from JPMorgan
The review platform exhibits strong future growth prospects with an improving profit profile, the broker said as it initiated coverage with a ‘buy’ recommendation and a 430p target price.
The group, which hosts reviews for businesses in over 100 countries submitted by users in over 200 countries, is free for consumers but makes money through the businesses that are being reviewed.
Since 2013, the number of websites on the platform has grown at a 54% annual growth to 529,000, while the number of reviews has increased by 54% to 121mln.
“The business model has attractive network effects, which are getting stronger as more consumers use the platform,” analysts said.
“The increased dominance will also act as a moat for external competition.”
Shares dipped 1% to 352.19p on Wednesday morning.