IPO stock eToro Group jumped to new highs and above a buy point Monday after analysts came out with initial ratings that were mostly bullish.
Of 15 analysts who initiated coverage on the trading platform early Monday, 10 gave buy or outperform recommendations to clients. Five others gave neutral ratings. Price targets for the stock ranged from 70 (from Deutsche Bank, USB and Susquehanna) to 85 (from JPM Securities), according to reports. The stock traded around 72 Monday morning.
Among those who issued buy ratings, Canaccord analyst Joseph Vafi views eToro as a next-generation digital disruptor, bringing to market a value proposition that is resonating with younger and active traders. According to TheFly.com, the analyst likes innovations such as the firm's thematic portfolios and a feature that lets investors copy successful traders' portfolios.
Other analysts also gave positive comments on the social trading tools.
Analysts Bullish On IPO Stock's Outlook
Goldman Sachs analyst James Yaro sees eToro Group as an attractive story in growing market share amid a fragmented European retail brokerage market. EToro is headquartered in Israel and most of its clients are outside the U.S., where the company plans to expand its presence.
BofA initiated coverage with a neutral rating, saying shares are at a full valuation after recent stock performance, TheFly.com reported. BofA sees upside potential from the Trump administration's crypto initiatives. But analysts cited macroeconomic and regulatory concerns, and want more details on organic growth and other metrics.
Deutsche Bank gave a neutral rating, saying the brokerage has substantial long-term growth opportunities via a "highly differentiated and appealing" social trading and investing platform. However, the analyst sees some risks from rising competition and any changes in the pace of adoption of its social investing platform, TheFly.com reported.
As of Dec. 31, the company had about 3.5 million funded accounts in 75 countries. Last year, eToro had net income of $192 million, up 1,161% from 2023. Commissions rose 46% to $931 million in 2024, according to its prospectus.
EToro Breaks Out
The stock surged more than 9% in active trading before paring gains Monday morning, briefly topping the 74.28 buy point of an IPO base. The buy range goes as high as 77.99. The trading platform went public May 14 at 52 a share.
The IPO stock, however, has been volatile. It reversed sharply lower Thursday, then rebounded 9.8% on Friday. EToro is also actionable from Wednesday's high of 66.55 with Thursday's high of 71.48 also serving as an early entry.
EToro has a Composite Rating of 91. The IPO stock has not traded long enough to have a 21-day average true range, which is a measure of volatility and trading risk.
