Trustpilot, Wise Downgraded as Macro Backdrop ‘Still Subdued’

Morgan Stanley downgraded both Trustpilot (LON: TRST) and Wise (LON: WISE) to “Equal Weight” from “Overweight” in a note this week.

The investment bank's analysts cited a “still subdued macro and IT spending backdrop” as part of its 2025 outlook for the European software and services sector.

Despite the downgrades, the investment bank raised its price targets for both companies, reflecting cautious optimism amid challenging conditions.

For Wise, the bank adjusted the price target to 1,185p, up from 1,045p. Morgan Stanley noted that while there are modest improvements in IT budget growth expectations, the broader macroeconomic environment remains uncertain.

This outlook suggests a tempered view of the company's near-term growth potential.

Similarly, Trustpilot saw its price target raised, this time to 305p, up from 220p.

Morgan Stanley pointed out that, like Wise, Trustpilot operates within a market facing modest IT spending growth, with continued uncertainties clouding the broader economic landscape.

Morgan Stanley's adjustments highlight the firm's cautious stance on European software and services companies amid ongoing macroeconomic challenges.

While both Trustpilot and Wise have strong individual stories, the broader subdued macro environment has seemingly tempered expectations for significant upside in the near term.