Panmure Liberum has reiterated its 'sell' rating on Trustpilot Group PLC (LSE:TRST), citing slowing bookings growth and increasing execution risks that the current valuation does not fully reflect.
The review site's first-half 2025 update showed year-on-year constant currency bookings growth slowed to around 17%, down from about 23% in the previous half.
Growth is expected to slow further to 12.3% in the second half, facing tougher comparisons from last year’s product repackaging.
Margin guidance was raised slightly to 14%, but this often happens alongside weaker sales growth due to lower commission costs.
Trustpilot is also seeing early signs of nervousness in key markets such as the UK and US, which could add further pressure.
While revenue forecasts were marginally increased, bookings growth estimates were trimmed slightly, particularly reflecting unexpected weakness in the UK market.
The stock trades at a high valuation, 5.3 times estimated 2025 sales and 77 times earnings, which Panmure believes does not price in the rising complexity and risks of executing the company’s strategy.
The broker maintains a target price of 200p, cautioning investors on the stock’s risk-return balance amid these challenges.
The shares were up 3% at 278.8p.