Futures slip, bank earnings ahead, Powell to speak - what’s moving markets
Investing.com - UBS has reiterated its Neutral rating and $58.00 price target on eToro Group (NASDAQ:ETOR) following investor meetings with the company’s EVP of Corporate Development & Strategy, Elad Lavi.
The meetings provided UBS with "a better appreciation" of eToro’s strong industry position and growth opportunities, with the company positioned to grow new accounts and deepen client relationships. The company maintains robust liquidity with a current ratio of 3.91, though InvestingPro analysis indicates relatively weak gross profit margins of 2.83%.
Merger and acquisition opportunities were a frequent topic during the discussions, with eToro reportedly evaluating multiple opportunities to drive both product and geographic expansion.
UBS noted that the third quarter appears to be off to a strong start for eToro, which could potentially drive upside to estimates if typical seasonality patterns continue.
While UBS acknowledged that eToro stock "continues to look cheap relative to peers and could have outsized upside potential," the firm remains "on the sidelines to see more evidence of consistent growth and execution."
In other recent news, eToro Group’s financial results have garnered attention from several analyst firms. The company reported second-quarter earnings per share of 31 cents, falling short of Goldman Sachs’ estimate of 49 cents and consensus expectations of 48 cents. Despite the earnings miss, Goldman Sachs reiterated its Buy rating with a $78.00 price target. Needham also maintained a Buy rating but lowered its price target to $76.00, noting that adjusted EBITDA of $72 million exceeded their estimate due to strong performance in eToro Currency Conversion. Jefferies adjusted its price target to $63.00 from $80.00, following a reassessment of earnings per share estimates for 2025 and 2026. Keefe, Bruyette & Woods reduced their price target to $60.00 from $65.00, describing the quarter as "noisy" and noting a GAAP earnings miss by $0.18 per share. Citizens JMP maintained a Market Outperform rating with an $85.00 price target, citing "better than modeled results on balance." These developments reflect a mixed response from analysts regarding eToro’s recent performance.
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