Panmure Liberum has upgraded Trustpilot Group PLC (LSE:TRST), the online consumer reviews platform, from hold to buy with a new 235p target price, up from 220p, after newly disclosed retention statistics reinforced the broker's confidence in the company's enterprise-focused growth strategy.
The upgrade is driven by fresh data showing that enterprise customers, defined as those on contracts exceeding $20,000 in annual value, are being retained at a meaningfully higher rate than the broader customer base.
Gross dollar retention (GDR), which measures the proportion of revenue kept from existing customers before any pricing increases or contract upgrades are applied, came in at 93% for the enterprise segment in 2025, six percentage points above the group average.
Net dollar retention (NDR), which captures the full value of existing customer relationships including upsells and price rises, stood at 111% in the enterprise segment, nine percentage points above the group average.
Panmure Liberum said the strong enterprise retention figures gave it greater confidence that Trustpilot could sustain mid-teens revenue growth over the medium term, and that the company's long-term NDR in the segment could be maintained close to 100%.
The broker acknowledged that performance outside the enterprise segment has deteriorated, with non-enterprise NDR now running at approximately 95%, broadly in line with pre-pandemic levels and below the peaks achieved between 2021 and 2023.
Panmure Liberum argued that this divergence supports Trustpilot's stated strategy of directing capital allocation toward its enterprise business, which now accounts for 43% of bookings and is growing faster than the group average.
The broker set out two margin expansion scenarios, both of which imply greater cost discipline than the company has exercised over the past five years, and said the targeted 30% EBITDA margin by 2030 was achievable if growth is maintained.
Panmure Liberum introduced a target range of 3x to 3.5x enterprise value to sales, equivalent to 18x to 21x enterprise value to operating profit, and valued the stock at the midpoint on a one-year forward basis.
The broker noted that rolling its valuation forward by a further year would imply a price of 275p.
In late morning trading, the stock was up 2.5% at 197.8p.