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Investing.com - Keefe, Bruyette & Woods lowered its price target on eToro Group (NASDAQ:ETOR) to $60.00 from $65.00 on Wednesday, while maintaining a Market Perform rating on the stock.
The price target reduction follows what KBW described as a "noisy quarter" for eToro, which completed its IPO during the middle of the second quarter. On a GAAP basis, eToro reported earnings that missed KBW’s estimate by $0.18 per share. Despite the miss, InvestingPro data shows the company maintains strong liquidity with a current ratio of 3.51x and remains profitable over the last twelve months.
The earnings miss was primarily driven by higher operating costs, which accounted for $0.07 of the shortfall, non-operating costs that contributed $0.20 to the miss, and a higher share count that impacted results by $0.01 per share.
These negative factors were partially offset by stronger net contribution, which provided a $0.08 positive impact, and a lower tax rate that added $0.02 per share. eToro’s adjusted EBITDA came in at $72 million, slightly above KBW’s estimate of $71 million and the consensus forecast of $68 million.
KBW cited the second-quarter results and management commentary on the current business environment as reasons for lowering its estimates and reducing the price target on eToro Group stock.
In other recent news, eToro Group reported second-quarter 2025 earnings per share of 31 cents, which missed Goldman Sachs estimates of 49 cents and consensus expectations of 48 cents. Adjusted EPS, excluding stock-based compensation, was 34 cents, also below the consensus estimates of 52 cents. Despite these results, Goldman Sachs reiterated its Buy rating with a price target of $78.00. Needham also maintained a Buy rating while lowering its price target to $76.00, citing mixed results with strong ECC performance offsetting lower cryptocurrency trading volumes. Jefferies adjusted its price target from $80.00 to $63.00, following the financial results, and reduced its EPS estimates for 2025 and 2026. Citizens JMP reiterated its Market Outperform rating with an $85.00 price target, noting better-than-modeled results despite a stock decline. Meanwhile, Jefferies emphasized eToro’s strong performance, maintaining a Buy rating with an $80.00 price target, as funded accounts grew by 14% year-over-year to 3.63 million. This growth was attributed to user acquisition and retention strategies and the acquisition of Australian investing app Spaceship in 2024.
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