eToro’s Mixed Financial Performance and Strategic Initiatives Lead to Hold Rating

In a report released yesterday, Craig Siegenthaler from Bank of America Securities reiterated a Hold rating on eToro, with a price target of $55.00.

Craig Siegenthaler has given his Hold rating due to a combination of factors that reflect both positive developments and certain limitations in eToro’s current standing. The company reported a better-than-expected earnings per share, driven by increased net interest and crypto contributions, alongside reduced expenses. This financial performance, coupled with an 11% growth in funded accounts, suggests a positive trajectory. However, the lack of detailed disclosures around net new assets and client performance remains a concern, contributing to the Hold rating.
Additionally, eToro’s recent initiatives, such as the launch of the CopyTrader model in the US and plans for smart portfolios and a non-custodial wallet, indicate a strategic push to enhance its offerings and expand its market presence. Despite these promising developments, eToro’s organic growth is not as robust as some of its competitors, which tempers the overall outlook. The company’s valuation appears more attractive, but the combination of these factors leads to a neutral stance, as reflected in the Hold rating.

In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $38.00 price target.