eToro Shares Drop Over 20% From Peak, but 7 Analysts Issue “Strong Buy” Prediction and Target $85

Thursday, 03/07/2025 | 07:43 GMT by Damian Chmiel
  • The eToro stock price declined from its June highs near $80, but experts maintain bullish ratings with a +30% upside potential.
  • Q1 2025 earnings revealed 21% growth in assets under administration to $14.8 billion despite margin compression.
  • Recently, the fintech secured a $250 million credit facility and expanded its partnership with Franklin Templeton.
Yoni Assia, Co-Founder & CEO, eToro, at Web Summit 2021 in Portugal
Yoni Assia, Co-Founder & CEO, eToro, at Web Summit 2021 in Portugal (photo: Wikimedia)

eToro shares (NASDAQ: ETOR) have experienced significant volatility since their recent market debut, with the stock currently trading at $63,42 as of July 3, 2025, down 1.4% from the previous session. Despite a notable decline from recent peaks, seven major investment firms have issued "Strong Buy" ratings for the social trading platform, with price predictions reaching as high as $85 per share, translating to +30% upside potential.

eToro Share Price Performance Since IPO

The fintech company's stock has faced headwinds since its May 14, 2025 IPO debut, declining over 5.4% from its initial closing price. More importantly, eToro shares have dropped over 20% from their June peaks near $80, representing a significant correction from the stock's early trading highs.

However, the current price level remains above the original IPO offering price, suggesting underlying investor confidence in the platform's long-term prospects.

From a technical analysis perspective, strong support has emerged in the $58-60 range, providing a foundation for potential recovery. The immediate resistance level sits around $68, corresponding to local peaks from May where upward momentum stalled again on June 27.

eToro stock price today. Source: Tradingview.com
eToro stock price today. Source: Tradingview.com

Following its rather successful US IPO, eToro secured a substantial $250 million credit facility, strengthening its financial position and providing additional flexibility for strategic initiatives and growth investments.

You may also like: For $10K, eToro Gives Retail Investors Hedge Fund Superpowers with AI Portfolios

Analyst Consensus Points to Strong Recovery Potential

Despite recent price weakness, Wall Street analysts remain overwhelmingly bullish on eToro's prospects. The stock currently carries an Average Brokerage Recommendation (ABR) of 2.00 on a scale of 1 to 5, indicating strong institutional support.

Seven analysts have issued "Strong Buy" ratings, representing 46.67% of all recommendations, while one additional firm maintains a "Buy" rating. The remaining seven analysts hold "Hold" positions, with notably zero "Sell" or "Strong Sell" recommendations across the coverage universe.

The bullish sentiment intensified following a wave of analyst initiations on June 9, 2025, when multiple prestigious firms began coverage. Goldman Sachs, TD Cowen, and Mizuho Securities all launched coverage with "Strong Buy" ratings, joined by Canaccord Genuity, Citizens JMP, and Cantor Fitzgerald with similar recommendations.

According to Jefferies, which set its “Buy” rating at $80, eToro is well-positioned to benefit from the growing adoption of retail investing globally.”

eToro Shares Recommendations

Brokerage Firm

Analyst

Recommendation

Goldman Sachs

James Yaro

Strong Buy

TD Cowen

William R. Katz

Strong Buy

Mizuho Securities USA

Daniel Dolev

Strong Buy

Canaccord Genuity

Joseph A. Vafi

Strong Buy

Citizens JMP

Devin Ryan

Strong Buy

Cantor Fitzgerald & Co

Brett Knoblauch

Strong Buy

Needham & Company

John Todaro

Moderate Buy

Redburn Atlantic

Charles Bendit

Hold

Susquehanna Financial Group

James E. Friedman

Hold

Keefe Bruyette & Woods

Kyle K. Voigt

Hold

UBS

Alex Kramm

Hold

Citigroup

Christopher Allen

Hold

Source: Zacks.com

eToro Share Price Predictions: Price Target Analysis Shows Significant Upside

The average price target of $75.20 represents a 12.93% upside from current levels, based on forecasts from 15 analysts. More optimistically, the highest price target reaches $85 per share, suggesting potential gains of 32% from the current trading price.

Mizuho Securities analyst Dan Dolev established an outperform rating for eToro shares alongside an $80 price target, highlighting several compelling growth drivers for the social trading platform .

Dolev pointed to expanding retail investor engagement across European markets as a primary catalyst supporting his optimistic outlook on eToro's stock trajectory. The analyst emphasized the platform's particular resonance with younger demographic investors who are increasingly active in equity markets.

"Gen Z is beginning to trade earlier in life than prior generations and has an affinity for viral social trading apps like ETOR," Dolev noted in his research coverage.

The Mizuho analyst identified additional structural tailwinds supporting eToro's growth prospects, including what he described as "a pending, estimated $80 trillion generational wealth transfer; and opportunity to grow in the U.S. and Asia, where retail trading is popular."

Analyst Firm

Analyst Name

Rating

Price Target

Current Premium/Discount*

Key Investment Thesis

Mizuho Securities

Dan Dolev

Outperform

$80

+24.2%

Gen Z adoption, European retail growth, generational wealth transfer

Deutsche Bank

Brian Bedell

Hold

$70

+8.7%

Democratizing investing theme, strong European position, competitive risks

In contrast, Deutsche Bank's Brian Bedell took a more measured approach, initiating coverage with a hold recommendation and $70 share price target while acknowledging both opportunities and challenges facing the company.

"We are quite constructive on the secular theme of democratizing retail investing, especially outside the U.S. where investors increasingly seek to build wealth," Bedell stated in his analysis.

However, the Deutsche Bank analyst expressed caution regarding competitive pressures, noting that while eToro maintains "well positioned" market leadership across European regions, intensifying global competition presents ongoing challenges for sustained market share growth.

Even the most conservative estimate of $65 represents only a 2% downside risk, indicating analysts see limited further decline potential. This tight range of price targets suggests broad consensus on eToro's valuation fundamentals.

eToro Q1 2025 Earnings Analysis

eToro delivered its first quarterly report as a publicly traded company following its May 2025 IPO, presenting mixed results that highlight both growth momentum and strategic investment priorities. The social trading platform demonstrated strong user acquisition and asset growth while experiencing margin compression due to increased marketing expenditures.

Metric

Q1 2025

Q1 2024

Change

Net Contribution

$217 million

$201 million

+8%

GAAP Net Income

$60 million

$64 million

-6.3%

Adjusted EBITDA

$80 million

$87 million

-8.0%

Adjusted EBITDA Margin

37%

43%

-6 percentage points

Funded Accounts

3.58 million

3.14 million

+14%

Assets Under Administration

$14.8 billion

$12.2 billion

+21%

Cash Position

$736 million

N/A

Strong liquidity

The 8% increase in net contribution was primarily driven by elevated trading volumes across eToro's platform, demonstrating the company's ability to capitalize on market volatility and user engagement.

"Our results show strong business performance for Q1 with an increase in net contribution driven by increased trading activity and our continued focus on sustainable, profitable growth. In the first quarter, in response to the market environment, we increased investment in marketing and growth," explained Meron Shani, eToro CFO.

eToro recently expanded its investment offerings by adding six new portfolios in partnership with Franklin Templeton, targeting long-term retail investors seeking diversified exposure to professional asset management strategies.

In a separate move to capture UK market share, eToro launched an aggressive debit card promotion offering 4% cashback in stocks for UK customers, representing one of the most competitive rewards programs in the retail trading sector.

eToro shares (NASDAQ: ETOR) have experienced significant volatility since their recent market debut, with the stock currently trading at $63,42 as of July 3, 2025, down 1.4% from the previous session. Despite a notable decline from recent peaks, seven major investment firms have issued "Strong Buy" ratings for the social trading platform, with price predictions reaching as high as $85 per share, translating to +30% upside potential.

eToro Share Price Performance Since IPO

The fintech company's stock has faced headwinds since its May 14, 2025 IPO debut, declining over 5.4% from its initial closing price. More importantly, eToro shares have dropped over 20% from their June peaks near $80, representing a significant correction from the stock's early trading highs.

However, the current price level remains above the original IPO offering price, suggesting underlying investor confidence in the platform's long-term prospects.

From a technical analysis perspective, strong support has emerged in the $58-60 range, providing a foundation for potential recovery. The immediate resistance level sits around $68, corresponding to local peaks from May where upward momentum stalled again on June 27.

eToro stock price today. Source: Tradingview.com
eToro stock price today. Source: Tradingview.com

Following its rather successful US IPO, eToro secured a substantial $250 million credit facility, strengthening its financial position and providing additional flexibility for strategic initiatives and growth investments.

You may also like: For $10K, eToro Gives Retail Investors Hedge Fund Superpowers with AI Portfolios

Analyst Consensus Points to Strong Recovery Potential

Despite recent price weakness, Wall Street analysts remain overwhelmingly bullish on eToro's prospects. The stock currently carries an Average Brokerage Recommendation (ABR) of 2.00 on a scale of 1 to 5, indicating strong institutional support.

Seven analysts have issued "Strong Buy" ratings, representing 46.67% of all recommendations, while one additional firm maintains a "Buy" rating. The remaining seven analysts hold "Hold" positions, with notably zero "Sell" or "Strong Sell" recommendations across the coverage universe.

The bullish sentiment intensified following a wave of analyst initiations on June 9, 2025, when multiple prestigious firms began coverage. Goldman Sachs, TD Cowen, and Mizuho Securities all launched coverage with "Strong Buy" ratings, joined by Canaccord Genuity, Citizens JMP, and Cantor Fitzgerald with similar recommendations.

According to Jefferies, which set its “Buy” rating at $80, eToro is well-positioned to benefit from the growing adoption of retail investing globally.”

eToro Shares Recommendations

Brokerage Firm

Analyst

Recommendation

Goldman Sachs

James Yaro

Strong Buy

TD Cowen

William R. Katz

Strong Buy

Mizuho Securities USA

Daniel Dolev

Strong Buy

Canaccord Genuity

Joseph A. Vafi

Strong Buy

Citizens JMP

Devin Ryan

Strong Buy

Cantor Fitzgerald & Co

Brett Knoblauch

Strong Buy

Needham & Company

John Todaro

Moderate Buy

Redburn Atlantic

Charles Bendit

Hold

Susquehanna Financial Group

James E. Friedman

Hold

Keefe Bruyette & Woods

Kyle K. Voigt

Hold

UBS

Alex Kramm

Hold

Citigroup

Christopher Allen

Hold

Source: Zacks.com

eToro Share Price Predictions: Price Target Analysis Shows Significant Upside

The average price target of $75.20 represents a 12.93% upside from current levels, based on forecasts from 15 analysts. More optimistically, the highest price target reaches $85 per share, suggesting potential gains of 32% from the current trading price.

Mizuho Securities analyst Dan Dolev established an outperform rating for eToro shares alongside an $80 price target, highlighting several compelling growth drivers for the social trading platform .

Dolev pointed to expanding retail investor engagement across European markets as a primary catalyst supporting his optimistic outlook on eToro's stock trajectory. The analyst emphasized the platform's particular resonance with younger demographic investors who are increasingly active in equity markets.

"Gen Z is beginning to trade earlier in life than prior generations and has an affinity for viral social trading apps like ETOR," Dolev noted in his research coverage.

The Mizuho analyst identified additional structural tailwinds supporting eToro's growth prospects, including what he described as "a pending, estimated $80 trillion generational wealth transfer; and opportunity to grow in the U.S. and Asia, where retail trading is popular."

Analyst Firm

Analyst Name

Rating

Price Target

Current Premium/Discount*

Key Investment Thesis

Mizuho Securities

Dan Dolev

Outperform

$80

+24.2%

Gen Z adoption, European retail growth, generational wealth transfer

Deutsche Bank

Brian Bedell

Hold

$70

+8.7%

Democratizing investing theme, strong European position, competitive risks

In contrast, Deutsche Bank's Brian Bedell took a more measured approach, initiating coverage with a hold recommendation and $70 share price target while acknowledging both opportunities and challenges facing the company.

"We are quite constructive on the secular theme of democratizing retail investing, especially outside the U.S. where investors increasingly seek to build wealth," Bedell stated in his analysis.

However, the Deutsche Bank analyst expressed caution regarding competitive pressures, noting that while eToro maintains "well positioned" market leadership across European regions, intensifying global competition presents ongoing challenges for sustained market share growth.

Even the most conservative estimate of $65 represents only a 2% downside risk, indicating analysts see limited further decline potential. This tight range of price targets suggests broad consensus on eToro's valuation fundamentals.

eToro Q1 2025 Earnings Analysis

eToro delivered its first quarterly report as a publicly traded company following its May 2025 IPO, presenting mixed results that highlight both growth momentum and strategic investment priorities. The social trading platform demonstrated strong user acquisition and asset growth while experiencing margin compression due to increased marketing expenditures.

Metric

Q1 2025

Q1 2024

Change

Net Contribution

$217 million

$201 million

+8%

GAAP Net Income

$60 million

$64 million

-6.3%

Adjusted EBITDA

$80 million

$87 million

-8.0%

Adjusted EBITDA Margin

37%

43%

-6 percentage points

Funded Accounts

3.58 million

3.14 million

+14%

Assets Under Administration

$14.8 billion

$12.2 billion

+21%

Cash Position

$736 million

N/A

Strong liquidity

The 8% increase in net contribution was primarily driven by elevated trading volumes across eToro's platform, demonstrating the company's ability to capitalize on market volatility and user engagement.

"Our results show strong business performance for Q1 with an increase in net contribution driven by increased trading activity and our continued focus on sustainable, profitable growth. In the first quarter, in response to the market environment, we increased investment in marketing and growth," explained Meron Shani, eToro CFO.

eToro recently expanded its investment offerings by adding six new portfolios in partnership with Franklin Templeton, targeting long-term retail investors seeking diversified exposure to professional asset management strategies.

In a separate move to capture UK market share, eToro launched an aggressive debit card promotion offering 4% cashback in stocks for UK customers, representing one of the most competitive rewards programs in the retail trading sector.

About the Author: Damian Chmiel
Damian Chmiel
  • 3066 Articles
  • 96 Followers
About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 3066 Articles
  • 96 Followers

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