Panmure Liberum has downgraded Trustpilot Group PLC (LSE:TRST) to 'hold' from 'buy', arguing the reviews platform's valuation has run too far while the shares remain highly volatile.
The broker lifted its target price to 250p from 235p, below the current share price of 259.8p, saying it struggles to remain constructive at this level.
Trustpilot's rating has expanded to 4.3 times the 2026 enterprise value to sales, against three times when Panmure upgraded the stock.
The downgrade comes despite first-half bookings growth of 18%, around 1 percentage point ahead of the broker's forecast, with revenue 2.1% ahead.
The divisional mix was uneven, however, with unexpected weakness in the UK, Trustpilot's biggest geography, more than offset by strength in North America.
UK constant currency bookings grew 11% against Panmure Liberum's 15% forecast, while North America grew 27% versus an expected 18%.
Around 2 percentage points of the UK shortfall reflects a reallocation of bookings to other divisions, as renewals of large contracts shifted to head offices, which are typically billed in the US.
Even adjusting for that, the broker said underlying UK growth was around 2 points weaker than expected, partly reflecting a sales team restructure and a degree of macro drag.
North American growth is being supported by April's repackaging, which removed the Advanced plan, introduced a cheaper Starter tier, and raised Premium prices by 30% in the UK and 27% in the US.
Panmure Liberum trimmed its 2027 constant currency revenue growth forecast by around 2 points, but cautioned this could prove too conservative.
It argued Trustpilot's bookings are becoming more weighted to the fourth quarter as the company pushes into Enterprise, making second-half comparisons look tougher than they really are.
The broker raised its 2026 revenue forecast by around 2% and earnings per share by 3% on the strong first half and currency movements.
