Citigroup Downgrades eToro to Neutral, PT Reduced to $62 from $72.

Citigroup Downgrades eToro to Neutral, PT Reduced to $62 from $72.

Citigroup has downgraded eToro Group (NASDAQ: ETOR) to Neutral from Overweight, reducing its price target (PT) from $72 to $62. The decision comes after the online trading platform reported strong Q2 earnings, but the stock experienced a 2.7% drop in early trading. eToro's Q2 net contribution exceeded expectations at $210 million, with a 26% year-over-year increase from $167 million in the previous quarter [1].

The company's stock price decline can be attributed to several factors. eToro's trading activity in cryptocurrencies slowed compared to previous quarters, which may have contributed to the stock's early trading drop. Additionally, the company's net interest income decreased by 12% to $44 million, which could have influenced the stock price [1].

Despite the stock price drop, eToro's Q2 performance was robust, with a significant increase in funded accounts to 3.63 million and assets under administration (AUA) rising by 54% to $17.5 billion. The company's revenue source breakdown for Q2 2025 shows substantial growth in crypto revenue, which increased by 17% to $1,915 million, and equities/commodities revenue, which grew by 37% to $114 million [1].

Looking ahead, eToro plans to leverage tokenization technology and AI tools to transform how retail investors interact with the markets and create new opportunities for growth. The company aims to continue its geographic and product diversification efforts, including further expansion in Europe and Asia [1].

Citigroup's downgrade reflects a cautious view on eToro's short-term prospects, but the company's long-term growth potential remains intact. The investment platform's diversified offerings, strong user engagement, and strategic moves position it well for continued success in the dynamic crypto investment app sector [2].

References:
[1] https://www.ainvest.com/news/etoro-q2-earnings-exceed-expectations-stock-2-7-2508/
[2] https://bitcoinworld.co.in/etoro-q2-profit-report/