Panmure Liberum starts Trustpilot at 'sell', shares tumble
tumbled on Monday as Panmure Liberum initiated coverage of the stock with a 'sell' rating and 200p price target.
Panmure said Trustpilot "finds itself in 2025 at the foothills of a complex multi-year business transition".
"Facing into a high cost of growth, management is pursuing Enterprise clients to reduce underlying customer churn and access larger brand investment - yet to do so may require them to enter the more competitive customer experience market," it said.
Panmure said the current valuation assumes perfect execution over a multi-decade time horizon despite near-term macro risks and medium-term business profile uncertainty.
"Deteriorating US macro will further test the business model's cyclicality in 2025," it said.
"We see the risk/reward equation skewed to the downside and initiate with a sell recommendation and a 200p target price, representing 4.1x FY25E EV/sales and 43.5x EV/EBIT, although we acknowledge 15.5% modest downside for a stock with this growth and volatility profile."
At 1030 BST, the shares were down 9.5% at 214.20p.
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