Goldman Sachs Downgrades eToro to Neutral, Cuts Price Target to $39
- Rating Adjustment: Goldman Sachs downgraded eToro from 'buy' to 'neutral' and cut its 12-month price target from $48 to $39, reflecting intensified competition and rising cost pressures in core markets, leaving shares trading around $36.14 with limited upside potential.
- Competitive Pressures: Analysts at Goldman noted that eToro faces increasing competitive intensity across its primary trading products and geographic markets, which could lead to higher customer acquisition costs, thereby weighing on profitability in the medium term and affecting future market performance.
- Growth Outlook: Goldman estimates eToro's compound annual growth rate (CAGR) for 2025-2027 at 7%, below the peer average of 8%, while projecting a pre-tax margin of 36% for 2025, significantly underperforming the 54% average for comparable peers, indicating limited operating leverage in the current environment.
- Market Divergence: This downgrade contrasts with Goldman’s optimistic view on Coinbase, which was upgraded to 'buy', highlighting a preference for platforms with scalable infrastructure revenues over those more exposed to competitive retail trading dynamics.
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Technical Analysis for
Technical Sentiment Analysis for () As of , () is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 0 technical signals, shows that 0 indicators are flashing buy, while 0 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
() Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | - | - | - | - | - | - | - |
| Fibonacci | - | - | - | - | - | - | - |
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