eToro, the Financial sector company, was revisited by a Wall Street analyst today. Analyst John Todaro from Needham maintained a Buy rating on the stock and has a $76.00 price target.
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John Todaro has given his Buy rating due to a combination of factors, primarily driven by eToro’s impressive financial performance in the recent quarter. The company reported an adjusted EBITDA of $72 million, significantly surpassing both Needham’s estimate of $59 million and the consensus estimate of $68 million. This strong performance was largely attributed to the strength in ECC trading, which more than compensated for the lower crypto volume.
Moreover, eToro’s revenue also exceeded expectations, coming in at $209 million against Needham’s projection of $168 million and the consensus of $195 million. The company’s strategic initiatives, such as the introduction of 12 new crypto assets in the US market, have contributed to accelerated growth in this segment. Although challenges remain, such as the limited compensation for ‘popular traders’ in the US, the overall outlook remains positive, supporting the Buy recommendation.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $80.00 price target.