eToro Stock: A Smart Buy After Recent Dip?
Upgrade to "Buy" with Target Price Increase
eToro, a leading platform for trading stocks and crypto, has garnered the attention of Deutsche Bank. Analyst Brian Bedell has upgraded eToro's stock from "hold" to "buy" and slightly raised the target price from $44 to $45.
Despite a 27% drop in shares since its Nasdaq debut in May, Bedell sees this dip as a great investment opportunity.
Impressive Earnings and Solid Fundamentals
The company's recent earnings report exceeded expectations, showcasing strong net contribution and adjusted EBITDA. Bedell highlights eToro's solid fundamentals and believes the stock could rally by 19% from Monday's close.
Growth Initiatives and Expansion Plans
Though some volatility persists due to ongoing growth initiatives, Bedell remains optimistic. He suggests that eToro's forecasts might be conservative. The company's expansion in the U.S. and other growth efforts could yield even better results.
Bedell predicts:
- Double-digit account growth
- Increased trading revenue
- Strength in non-trading areas like subscription revenue, money transfers, and net interest income.
Copy Trading Launch in the U.S.
eToro recently launched copy trading in the U.S., allowing users to automatically copy trades of successful investors. While already well-established in Europe, Bedell praises eToro's efforts to expand into the U.S. and Asia, which could drive further growth.
