Trustpilot Stock Downgraded to Sell: Shares Fall
Trustpilot stock faces a significant downturn as analysts downgrade shares to “Sell,” sparking investor concern. The primarykeyword,Trustpilot,saw its shares plummet after experts highlighted worries about the US economy’s impact on the review platform’s business model. The secondarykeyword, trustpilot stock, is now trading at a lower price. This strategic shift to attract enterprise clients is noted by news Directory 3. The expansion plans, however, could lead Trustpilot into fiercer competition, with analysts questioning the stock’s valuation. Discovering whether these market conditions will affect Trustpilot’s long-term aims is a concern for the future. Will the brand’s actions overcome the headwinds? Find out more.
Trustpilot Shares Plunge After Analyst Downgrade to ‘Sell’
Updated June 09, 2025
Shares of Trustpilot, the online review platform, took a hit Monday following a “Sell” rating from analysts who expressed worries about the economic outlook. the trustpilot stock price fell more than 8%, trading around 216p.
Sean Kealy and Johnathan Barrett, analysts at Panmure Liberum, believe the “deteriorating” U.S. economy coudl “test the business model’s cyclicality.” They set a target price of 200p for the review platform, citing a risk/reward scenario skewed to the downside.
despite a 19% revenue increase to $210 million in 2024 and a 26% rise in bookings to $239 million, analysts suggest the stock’s valuation doesn’t align with it’s prospects.
“Trustpilot’s shares price-in 30 years of perfect execution, yet both near-term and medium-term risks exist,” they noted. ”There is little visibility over the long-term margin/growth mix.”
Trustpilot’s Expansion Plans come With Fee
According to Kealy and Barrett, Trustpilot is in the early stages of a “complex business transition.” The company’s strategy to attract Enterprise clients, aiming for a more stable customer base and increased brand investment, may lead them into a more competitive market.
While Trustpilot reported that increased business adoption and brand awareness were “fuelling the flywheel” in its full-year results, analysts cautioned that relying on brand association might be a “weak pitch” in less established markets.
Trustpilot aims for high-teens revenue growth in constant currency for 2025 and a 2% improvement in EBITDA.
What’s next
Investors will be watching closely to see how Trustpilot navigates the economic headwinds and executes its expansion strategy in the face of increased