eToro’s Growth Potential and Market Positioning Drive Buy Rating

eToro (ETOR) has received a new Buy rating, initiated by Needham analyst, John Todaro.

John Todaro has given his Buy rating due to a combination of factors that highlight eToro’s potential for growth and strong market positioning. One of the key reasons is eToro’s unique social trading feature, which enhances user engagement and leads to higher monetization per funded account. Additionally, the company has a significant opportunity to convert its large base of registered users into funded accounts, particularly with its expansion efforts in Asia and the United States.
Another factor contributing to the Buy rating is eToro’s performance metrics, such as DARTs and ARPU, which are higher than those of its peers. The company’s recent growth in the APAC region, with over 500,000 new funded accounts, indicates a strong upward trajectory. Furthermore, eToro’s expansion in the US crypto market, increasing its asset offerings from 3 to 20 and planning to reach 75, demonstrates its commitment to capturing market share. The robust demand for equities and options among retail investors further supports the positive outlook for eToro.

In another report released today, Jefferies also initiated coverage with a Buy rating on the stock with a $80.00 price target.