eToro initiated with a Neutral at BofA after recent outperformance

As previously reported, BofA initiated coverage of eToro (ETOR) with a Neutral rating and $71 price target given what the firm calls a “full valuation after recent outperformance.” The firm sees upside potential from the Trump administration’s crypto initiatives, which could allow online broker eToro to expand its offering in the U.S. However, it calls out macroeconomic and regulatory concerns as “key risks.” Other issues include eToro’s lack of disclosures around organic growth, including churn, client performance and execution quality as well as their contract for difference mix due to sustainability concerns, the analyst tells investors.