FTSE 250 movers: Trustpilot gains on Cazenove note
By Frank Prenesti
Date: Monday 01 Jul 2024
(Sharecast News) - FTSE 250 (MCX) 20,268.11 -0.09%
Trustpilot advanced after JPMorgan Cazenove placed the shares on 'positive catalyst watch' ahead of the first-half trading update on 11 July, saying it expects another period of adjusted EBITDA ahead of expectations.
The bank said it sees upside risk to full-year expectations.
"We expect the greatest focus to be on adjusted EBITDA delivery, with Trustpilot now past its breakeven point and beginning to generate organic free cash flow," JPM said.
It forecasts around $10.5m of adjusted EBITDA through the period, which stands about 9% ahead of company consensus.
"Our delta versus expectations is driven by a more positive view on how much operating leverage Trustpilot can drive," it said.
"Specifically, we expect sequential progress in cost leverage versus H123 across sales & marketing (S&M) expenses, helped in part by accelerating US growth (JPM estimated adjusted S&M expenses circa 30.5% of sales in H124 versus circa 31.2% in H223).
"We build in less sequential progress on cost leverage across Research & Development (R&D) and General & Administrative (G&A) expenses, leaving a buffer for upside risk to our margin estimates."
Overall, the bank said that while its H124 earnings estimates are ahead of expectations, its forecasts imply a relatively conservative sequential ramp in profitability.
JPM rates Trustpilot at 'overweight' with a 250p price target.
Carnival and Auction Technology led the fallers, both down more than 5%.
Market Movers
FTSE 250 - Risers
XPS Pensions Group (XPS) 317.00p 6.02%
W.A.G Payment Solutions (WPS) 64.40p 5.57%
Currys (CURY) 74.60p 3.61%
Trustpilot Group (TRST) 222.00p 3.26%
FirstGroup (FGP) 163.00p 2.97%
Foresight Group Holdings Limited NPV (FSG) 482.00p 2.55%
Investec (INVP) 588.00p 2.53%
CMC Markets (CMCX) 335.00p 2.45%
Trainline (TRN) 321.80p 2.35%
Playtech (PTEC) 475.50p 2.26%
FTSE 250 - Fallers
Carnival (CCL) 1,285.00p -5.31%
Auction Technology Group (ATG) 475.50p -5.09%
Alpha Group International (ALPH) 2,185.00p -3.32%
Pagegroup (PAGE) 413.80p -2.73%
Moonpig Group (MOON) 186.00p -2.41%
Grainger (GRI) 238.00p -2.26%
Monks Inv Trust (MNKS) 1,160.00p -1.86%
Indivior (INDV) 1,217.00p -1.85%
HarbourVest Global Private Equity Limited A Shs (HVPE) 2,425.00p -1.82%
Wizz Air Holdings (WIZZ) 2,196.00p -1.79%
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