Key Takeaways
- Shares of online trading platform eToro Group traded at a record high Monday after analysts began coverage of the stock with positive comments.
- The online trading platform received a “Buy” rating from Jefferies, and “Neutral” ratings from UBS and Citi.
- The company began publicly trading last month.
Shares of eToro Group Ltd. (ETOR) surged Monday morning after several analysts initiated coverage of the online trading platform with positive comments.
Jefferies gave the stock a “Buy” rating, with a 12-month price target of $80. The analysts wrote that the company is “well-positioned to benefit from the growing adoption of retail investing globally.” They noted that eToro’s strength in the European Union (EU) and U.K. markets, along with its “differentiated product offering and distinguished brand,” put it in a unique position to boost its account base.
UBS began its coverage with a “Neutral” rating and $70 price target. The bank’s note to investors, entitled “Grabbing Global Retail Investors by the Horns,” contained a similar phrase, “well positioned to benefit from increasing retail participation in financial markets, which has been accelerating in the last few years.” Still, it noted that since eToro is a newly public company—it began trading last month—it “still has to demonstrate that it can execute on product and market expansion, while near-term results could be volatile.”
Citi also gave a “Neutral” rating, putting the price target at $72. However, the analysts there also added that it was “high risk,” explaining that while they “remain constructive on the health/resiliency of the retail segment and bullish on the outlook for European retail specifically,” they see “some challenges as well.”
The ratings news sent eToro Group shares up 8% to about $74 in recent trading after earlier hitting a record-high $76.75.
TradingView
