Goldman Sachs Downgrades eToro to Neutral, Cuts Price Target to $39
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- 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.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
