BofA cuts eToro stock price target on lower account growth outlook
BofA Securities reduced its price target for eToro (NASDAQ:ETOR) to $39 from $46, citing lower account growth outlook. Earnings estimates for 2026-2028 were also lowered. Despite a 9.6% revenue decline, eToro remains profitable. BofA expects crypto net trading to grow 51% QoQ. The stock trades near its 52-week low, with mixed analyst ratings and price targets.
How this was made
The 30-second read
Why it matters
The downgrade signals a bearish short‑term outlook for eToro, though the company remains profitable and its AUM is growing.
Market read
Analyst target cuts are a primary catalyst for price movement in the short term, especially for a niche fintech stock like eToro.
What to watch
Potential upside from upcoming crypto‑trading volume rebounds and regulatory clarity.
Background
BofA’s target cut follows a modest rise in funded accounts but a slowdown in trading activity and a recent Senate rejection of the CLARITY Act that hurt crypto‑linked stocks.
Ticker impact
BofA Securities lowered its price target on eToro to $39 from $46 and kept a Neutral rating.
likely pressure as the market prices in the lower target
The target reduction reflects weaker growth expectations and a lower valuation multiple, which typically prompts sellers.
Market effects
The downgrade may weigh on other crypto‑linked brokerage stocks.
U.S. equity markets could see modest bearish bias in the fintech segment.
Limited to markets where eToro is listed or has significant exposure.
Counterpoint
Some analysts still see upside given recent funded‑account growth and AUM expansion.
Key entities
- companyeToro Group
NASDAQ‑listed crypto‑exchange and brokerage.
- analystBofA Securities
Investment bank providing the price‑target revision.
