eToro Stock (ETOR) Pops 10% as Jefferies Says Buy, Citing “a Unique Global Retail Offering”

June 9, 2025 — Jefferies has officially initiated coverage on eToro (ETOR) with a Buy rating and a 12-month price target of $80, implying a 16% upside from the current share price of $68.70.

Their call? eToro is “a unique global retail offering” with a product-led model, strong international account growth, and expanding margins that are finally showing up in the bottom line.

eToro Scales Internationally while Driving Regional Growth

In the initiation note, lead analyst Daniel Fannon points to a massive underpenetrated global market: with average equity ownership outside the U.S. still around 10%, Jefferies sees “significant opportunity for increased adoption” as eToro expands in the EU, UK, and beyond.

Over the last three years, eToro’s active user accounts have grown at an average rate of +9%. Jefferies expects that to accelerate. Fannon wrote: “We believe eToro is uniquely positioned to continue to grow its account base organically at +10% y/y.”

eToro’s CopyTrader Is A Differentiator

At the heart of eToro’s pitch is its CopyTrader feature — a tool that allows users to follow and replicate strategies from over 3,300 “popular traders”. For less experienced investors, it’s a shortcut to strategy. For eToro, it’s a built-in retention mechanism.

Jefferies also noted that 10–15% of assets under custody (AUC) are currently enrolled in CopyTrading, a figure with room to grow as the feature gains traction globally. “The social aspect of this offering helps provide a more sticky relationship with its customer base over time,” the note said.

A Profit Story Taking Shape

eToro’s path to profitability is already underway. Jefferies highlights that adjusted EBITDA margins went from negative in 2022 to nearly 39% in 2024, driven by increased scale and more profitable customer growth.

Even at that level, Jefferies isn’t projecting further operating margin expansion — but they are making a valuation call: “eToro currently trades at 14x our 2026 EV/EBITDA estimates, a 50% discount to its primary peer HOOD.”

eToro Demonstrates Retail Momentum, Even in a Choppy Market

Beyond product and margins, Jefferies sees a constructive market environment helping to lift the broader story. In Q1 2025, eToro saw +7% year-over-year revenue growth and +14% account growth, according to pre-announced results. That growth, Jefferies says, has been supported by elevated volatility, higher-for-longer interest rates, and increased client balances.

While the firm acknowledges that growth may have moderated in the current quarter, the broader outlook remains positive.

“We still anticipate positive y/y growth and continued solid momentum across key metrics,” the note concluded.

Market Reacts to Jefferies Call

eToro shares (ETOR) jumped following the Jefferies initiation. The stock closed at $68.70 on June 6, gaining $6.13 or +9.80% for the day. Pre-market trading on June 9 showed further upside, with ETOR priced at $71.75, up another 4.44%.

That puts the stock within striking distance of Jefferies’ 12-month price target of $80 — a level the firm says reflects upside from ongoing account growth, expanding copytrading engagement, and improving margin performance.

Over the past six months, ETOR is now up 2.77%, with most of that move occurring in just the last few sessions. Whether the momentum holds may depend on how long retail engagement, crypto activity, and macro tailwinds continue to support the thesis Jefferies just put on the table.