Analyst Ratings February 18, 2026

BofA Lifts eToro Target to $44 After Quarterly Beat; Analysts Show Divergent Valuations

Adjusted EPS outperformance and stronger ECC trading underpin the move, while crypto activity stays subdued

By Ajmal Hussain ETOR
BofA Lifts eToro Target to $44 After Quarterly Beat; Analysts Show Divergent Valuations
ETOR

BofA Securities raised its price target on eToro Group to $44 from $40 while keeping a Neutral rating after the broker flagged an adjusted EPS beat and improved ECC trading contribution. eToro reported fourth-quarter 2025 earnings above expectations and robust revenue, prompting upgrades and higher targets from other firms even as crypto volumes remain muted.

Key Points

  • BofA raised its price target on eToro to $44 from $40 while keeping a Neutral rating.
  • eToro reported adjusted EPS of $0.71, beating BofAs $0.64 estimate and consensus $0.59; diluted EPS for the past 12 months was $2.27.
  • Funded accounts rose to 3.81 million, up 9% quarter-over-quarter on an annualized basis; ECC trading strength drove results while crypto activity stayed muted.

BofA Securities increased its price target for eToro Group to $44 from $40 but retained a Neutral rating on the shares. The firm pointed to an adjusted earnings-per-share beat on the companys latest report as the catalyst for the change in valuation, while noting that the new target sits close to an independent assessment that flags the stock as undervalued despite a recent market price of $31.84.

On the earnings detail that drove BofAs move, eToro posted adjusted EPS of $0.71 for the quarter versus BofAs internal estimate of $0.64 and the consensus estimate of $0.59. That result contributed to eToros reported diluted EPS of $2.27 over the past twelve months.

BofA attributed the outperformance to several operational and balance-sheet factors. Managements ECC net trading contribution strengthened and ECC contribution per trade improved on a quarter-over-quarter basis, a trend the bank said was supported by elevated commodities trading. The quarters beat also reflected lower tax expense and a reduced share count, which together amplified reported EPS.

On user metrics, funded accounts rose to 3.81 million, marking a 9% quarter-over-quarter increase on an annualized basis. BofA characterized early trends for the first quarter of 2026 as constructive overall, driven by continued strength in ECC trading, even as crypto activity remained muted.

eToros fourth-quarter 2025 results released alongside these analyses showed an EPS of $0.71, topping a forecast of $0.69. Revenue for the period came in at $3.87 billion.

The post-results reaction among analysts was broadly favorable but showed notable variation in valuation. Citizens upgraded the stock to Market Outperform and kept a $90 price target, with analyst Devin Ryan citing stronger fourth-quarter performance as the rationale. TD Cowen also raised its price target to $55 from $50 while maintaining a Buy rating, a change linked to the companys fourth-quarter results and an improved outlook for adjusted EPS in 2026-2027.


What this means - concise:

  • eToros latest quarter beat consensus on adjusted EPS and delivered substantial revenue, supporting multiple higher price targets from analysts.
  • Trading economics tied to ECC and commodities played a central role in the beat; crypto volumes remain a muted contributor.
  • Analyst valuations vary widely, reflecting differing views on sustainability of trading contribution and future earnings trajectories.

From a product and platform perspective, the quarter highlights how margins and per-trade economics - particularly in ECC and commodities - can shift reported profitability even when crypto engagement is soft. For investors and market participants focused on fintech, trading platforms, and crypto exposure, those dynamics explain the mixed but generally constructive analyst reactions.

Risks

  • Crypto activity remains muted - continued low crypto volumes could weigh on revenue and trading contribution; impacts crypto-focused products and trading services sectors.
  • Heavy reliance on ECC net trading contribution and elevated commodities trading - if ECC or commodities volumes decline, trading economics and EPS could weaken; affects trading platforms and fintech margins.
  • Wide divergence in analyst price targets (from $44 to $90 to $55) signals uncertainty about the sustainability of current earnings drivers and valuation - relevant to equity investors and market analysts.

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