Citizens has reaffirmed its Market Outperform rating on eToro Group (NASDAQ:ETOR) and preserved a $90.00 price target, a level that represents roughly 172% upside relative to the present share price of $33.07. According to InvestingPro data cited alongside the rating, eToro is trading slightly below its Fair Value estimate even after a notable 22.75% return in the past week.
The reiteration followed the release of eToro’s fourth-quarter results. Citizens analyst Devin Ryan said the company produced a stronger fourth-quarter performance, and highlighted that eToro has been profitable over the trailing twelve months with diluted earnings per share of $2.27. The firm also pointed to a strong liquidity position, with a current ratio of 4.3, indicating that short-term obligations are comfortably covered by liquid assets.
Ryan argued that the market is underestimating eToro’s competitive position and its capacity to grow from the current base. He cautioned that discussion in the market often centers too narrowly on competitive dynamics and assumes a winner-take-all outcome for retail brokerages - a framing Citizens believes is misplaced.
Citizens placed eToro’s valuation metrics in context, noting a market capitalization of $2.77 billion and annual revenue of $13.8 billion, which corresponds to a price-to-earnings ratio of 12.84. The firm also referenced Robinhood as a frequent comparison in competitive conversations, and said it retains a bullish view on Robinhood as well.
The analyst cited several structural tailwinds supporting the opportunity set: rising retail participation, generational wealth transfer, and continued digitization of investing. Citizens contended these secular trends create enough room in the market for multiple scaled platforms to gain share from slower-moving incumbents.
In other recent company-specific developments, eToro Group Ltd. reported fourth-quarter 2025 results that beat consensus expectations. The company recorded earnings per share of $0.71, above the $0.69 forecast, and reported revenue of $3.87 billion for the quarter. While share-price movement was described as notable, Citizens said price action was not the central focus of its analysis; the earnings beat was taken as a sign of robust investor sentiment. These items form part of the most recent updates on eToro.
Key points
- Citizens reaffirmed Market Outperform on eToro and kept a $90 price target, implying a 172% upside from $33.07.
- eToro reported stronger Q4 results, with EPS of $0.71 versus a $0.69 forecast and quarterly revenue of $3.87 billion; trailing twelve-month diluted EPS stands at $2.27 and the current ratio is 4.3.
- Analyst view emphasizes secular tailwinds for retail investing platforms and argues the market underestimates eToro’s competitive positioning; valuation metrics show a market cap of $2.77 billion and a P/E of 12.84.
Risks and uncertainties
- Competitive dynamics remain a focal point of market debate - Citizens notes the market may overemphasize a winner-take-all outcome for retail brokerages, which creates uncertainty around future market-share trajectories.
- The company’s growth thesis relies on secular trends such as rising retail participation, generational wealth transfer, and digitization of investing - any slowdown in these trends would affect the opportunity set for digital trading platforms.
- Comparative assessments against peers, including Robinhood, introduce benchmarking risk; competitive comparisons are a central element of investor discussion and valuation expectations.