'eToro Group (ETOR) Back To Show Me Status'; PT Lowered to $35 at TD Cowen

TD Cowen analyst Bill Katz lowered the price target on eToro Group (NASDAQ: ETOR) to $35.00 (from $55.00) while maintaining a Buy rating.

The analyst commented: "Back To "Show Me" Status; Post 2Q (see 8/11), we lower '26-27E adj. EPS, net of layering in TradeZero deal. We also reduce our 12M price target by $20 to $35. While we see ETOR, once again, back in "show me" camp, much negativity seems priced in, we believe, following the ~20% decline post results. Inside, we explore the bull, bear and where we stand cases. Residual upside is likely back-ended.

The Stock - On the one hand, the sharply lower EPS outlook is clearly disappointing, and forecasting crypto trading now seems more art than science. Management's limited discussion on TradeZero, which they purchased for up to $231M in consideration, or ~9% of the unaffected market cap (8/10) may also be a dampening sentiment, in our view. On the other hand, the ~20% drop in the stock post results swiftly washed out the bullish sentiment in our view, with the stock trading at ~10x our revised '27E, ex ~$6.50 per share in pro forma net cash. We reduce our 12M price target by $20 to $35, or ~ 11x revised '27E, down from 18x prior. Affirm Buy, though expect the stock to be range-bound for the next few months."

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