Canaccord Genuity Reiterates Buy on eToro, Raises PT to $78 from $78

Canaccord Genuity Reiterates Buy on eToro, Raises PT to $78 from $78

Canaccord Genuity has reiterated its "Buy" recommendation on eToro Group Ltd. (NASDAQ: ETOR), raising its price target to $78 from $78 [1]. This move comes on the heels of the company's Q2 2025 financial performance, which saw revenue of $2.09 billion and adjusted earnings per share (EPS) of $0.56, surpassing analyst expectations [1].

The investment bank's optimism is based on eToro's robust operational execution and strategic expansion, which have positioned it as a leader in the democratization of finance. The platform's ability to grow assets under administration (AUA) and funded accounts at a double-digit rate, coupled with its strategic product and geographic expansion, suggests a durable competitive moat [1].

However, Canaccord Genuity acknowledges the near-term margin pressures and competitive headwinds that eToro faces. The company's adjusted EBITDA margins contracted to 37% in Q1 2025 from 43% in 2024, driven by increased marketing and compliance costs [1]. Despite this, the bank remains bullish on eToro's long-term prospects, citing its strong balance sheet and flexibility to fund further expansion.

Investors should monitor key metrics such as AUA growth, user retention rates, and margin recovery in upcoming quarters. Canaccord Genuity's price target represents a forecasted upside of 53.88% from the current price of $47.56, indicating a high level of confidence in eToro's growth trajectory [2].

References:
[1] https://www.ainvest.com/news/etoro-q2-2025-financial-performance-blueprint-long-term-investment-digital-trading-revolution-2508/
[2] https://www.marketbeat.com/stocks/NASDAQ/ETOR/forecast/