eToro’s Strong Market Position and Growth Potential Justify Buy Rating

Daniel Fannon, an analyst from Jefferies, has initiated a new Buy rating on eToro (ETOR).

Daniel Fannon has given his Buy rating due to a combination of factors that highlight eToro’s strong position in the global retail investing market. eToro is capitalizing on the increasing global trend of retail engagement, particularly in regions outside the US where equity ownership is relatively low. This presents a significant growth opportunity as the company continues to expand its user base, supported by its strong brand presence and innovative product offerings.
Furthermore, eToro’s financial performance is improving, with adjusted EBITDA margins expected to reach nearly 39% by 2024, reflecting the benefits of scaling and a focus on profitable growth. The company’s unique copytrader feature enhances its product differentiation, allowing users to replicate strategies of successful traders, which strengthens customer retention. Additionally, eToro’s valuation appears attractive, trading at a discount compared to its peers, which supports the Buy rating.

According to TipRanks, Fannon is a top 100 analyst with an average return of 14.1% and a 70.36% success rate. Fannon covers the Financial sector, focusing on stocks such as Charles Schwab, StoneX Group, and BlackRock.

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