BofA Securities has reaffirmed a Neutral rating on eToro Group with an unchanged price target of $44.00. At the time of the note, the stock was trading at $30.15, below the analyst target and beneath an InvestingPro Fair Value analysis of $41.27 that indicates the company may be undervalued relative to that internal benchmark.
The bank highlights that roughly 70% of eToro's clients reside in Europe, a region the firm characterizes as having lower online investing adoption overall and a younger investor base, but also a less competitive landscape for social investing products. Within those European markets, eToro is said to hold between 5% and 12% market share and ranks among the top three providers in major countries.
Financially, BofA points to a trailing price-to-earnings ratio of 12.1 for eToro and a market capitalization of $2.61 billion. The broker notes shares have fallen about 33% over the past six months, underscoring recent price volatility despite what analysts view as attractive valuation metrics on some measures.
In the view of BofA, Europe - where social investing is permitted broadly and contracts for difference remain popular - should supply the bulk of eToro's net new assets and account growth going forward. The firm believes the combination of regulatory permissiveness for social features and local product preferences will be the primary driver of customer acquisition in those markets.
Operationally, eToro is pursuing AI-driven efficiencies intended to speed product development while managing expense growth as the business expands. The company is building infrastructure around multiple AI tools named in company communications - Tori, Base44, and OpenClaw - and plans to offer an App store that will host nearly 1,000 investor-built applications, according to the company information cited by analysts.
Looking ahead, eToro has outlined several product and regulatory milestones: the planned launch of a non-custodial wallet in the first half of 2026; an expansion into prediction markets in the second half of 2026; and the pursuit of a U.S. registered investment adviser license to fully enable its CopyTrader product in the United States.
The firm's fourth-quarter 2025 results contributed to the shift in analyst sentiment across the coverage universe. eToro reported EPS of $0.71, ahead of a $0.69 forecast, and revenue of $3.87 billion. Those results prompted multiple firms to update their views and targets.
Specifically, Cantor Fitzgerald increased its price target to $52, citing strong performance across equities, commodities, and currencies while noting a decline in crypto trades. BofA itself raised its price target to $44, emphasizing the EPS beat relative to both its own and consensus estimates. TD Cowen moved its target to $55 on the basis of an improved multi-year earnings outlook, and Citizens upgraded the stock to Market Outperform, pointing to eToro's competitive positioning after the fourth-quarter showing.
These analyst moves reflect a generally favorable reception to the recent quarterly results among coverage firms, though the primary coverage recommendation referenced here remains Neutral from BofA.
Key takeaways
- Analyst coverage shifted higher following Q4 2025 results that beat expectations, but BofA retains a Neutral rating with a $44 target.
- eToro's growth thesis is concentrated in Europe, where the company holds 5-12% market share and benefits from social investing and CFD popularity.
- The company is investing in AI-enabled infrastructure and product distribution, and has announced multiple product and regulatory milestones scheduled for 2026.
Risks and uncertainties
- Share price volatility - shares have dropped about 33% over the past six months, reflecting near-term market risk for the stock.
- Execution and timing risk for planned launches and regulatory approvals - the non-custodial wallet, prediction markets expansion, and U.S. RIA license are all planned milestones with timing that could affect growth trajectories.
- Concentration risk tied to European markets - dependence on Europe for net new assets and account growth could expose results to region-specific adoption trends and competitive dynamics.