Source: Sharecast
The broker said the stock is "fairly valued", and highlighted the ongoing baby formula lawsuit facing its Mead Johnson Nutrition business, which continues to be an overhang for the business.
The suit, which related to claims that the company failed to adequately warn about the risk of intestinal disease necrotizing enterocolitis (NEC), could result in a settlement of around £0.7bn, according to Berenberg's calculations.
"Headlines related to trials could both positively and negatively surprise over the next 12 months," the broker said.
Nevertheless, last week's third-quarter results showed organic sales growth of 7.0%, comfortably above the 6.3% expected by the market, with the core operations recording like-for-like growth of 6.7% compared with the 5.3% estimate.
According to Berenberg, Reckitt's emerging market operations "remain the growth engine", with China a key driver of outperformance.
RBC Capital Markets initiated coverage of Trustpilot on Monday with an ‘outperform’ rating and 290p price target.
"Trustpilot has turned first-mover advantage into strong market positions in its key regions and is executing on its shift to higher value, stickier Enterprise customers," the bank said.
"This drives mid-teens top-line growth (circa 6% CAGR FY24-27e), underpinned by Net Dollar Retention of circa 100% post the package migration, whilst our proprietary analysis suggests a long runway of potential embedded growth in the platform."
RBC said Trustpilot will be a net beneficiary of the proliferation of AI, playing an important role in protecting consumer trust.
"We value TRST on 4.5x FY27e EV/Sales, driving a 290p price target, justifying an outperform recommendation," it said.
