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Investing.com - UBS has reiterated its Buy rating and GBP4.00 price target on Trustpilot Group PLC (LON:TRST) following the company’s H1 2025 results, which exceeded expectations on adjusted EBITDA.
The company has raised its margins outlook for fiscal year 2025, demonstrating continued growth and improved profitability metrics that reinforced UBS’s positive stance on the stock.
UBS highlighted two significant developments strengthening Trustpilot’s market position: the increasing importance of Trustpilot feedback for Generative Engine Optimisation, with Gemini AI impressions growing 80% year-over-year and ChatGPT citations increasing 246% versus June.
The firm also noted Trustpilot’s strong free cash flow conversion, which reached 84% of EBITDA in the first half, providing evidence of the company’s cash-generative SaaS business model and supporting its increased share buyback program to £30 million.
UBS continues to view Trustpilot as a market leader with a defensible brand and proven profitability model, suggesting the current valuation does not fully reflect the company’s improved financial profile.
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