TRST: Enterprise Shift And Market Leadership Will Drive Medium Term Upside

Analysts have modestly reduced their price target on Trustpilot Group to approximately £3.86 from about £4.18 per share. They cite a higher discount rate and slightly slower revenue growth assumptions, while still highlighting the company’s strong market position and successful pivot toward higher value enterprise customers.

Analyst Commentary

Bullish Takeaways

• Bullish analysts highlight that the initiation of coverage with an Outperform rating and a price target of 290 GBp signals confidence that the recent pullback does not fully reflect Trustpilot’s medium term earnings potential.
• They note that Trustpilot’s first mover status has translated into defensible market share in core geographies, which underpins visibility on recurring revenue and supports a premium valuation multiple compared with smaller review platform peers.
• The ongoing shift toward higher value enterprise customers is described as a key growth catalyst, with analysts expecting improved average revenue per account and operating leverage as larger contracts scale through the platform.
• Positive sentiment is further supported by the view that execution on the enterprise strategy could provide upside to current margin and cash flow forecasts, creating scope for future upward revisions to price targets if milestones are met.

Valuation Changes

• The fair value estimate has been lowered modestly to approximately £3.86 per share, from about £4.18 per share.
• The discount rate has risen slightly to around 8.5 percent, from roughly 8.1 percent, reflecting a marginally higher perceived risk profile.
• Revenue growth assumptions have been trimmed slightly to about 21.1 percent, from roughly 22.4 percent, indicating a more conservative top-line outlook.
• The net profit margin forecast has increased moderately to approximately 10.9 percent, from about 9.6 percent, implying improved profitability expectations.
• The future P/E multiple has been reduced significantly to roughly 58.7 times, from about 79.7 times, pointing to a more conservative valuation framework.