eToro initiated with a Neutral at Citi

Citi analyst Christopher Allen initiated coverage of eToro (ETOR) with a Neutral rating and $72 price target eToro stands out for its regional diversity, brand, unique offerings, crypto leverage, and clear product/regional expansion opportunities, the analyst tells investors in a research note. The firm remains constructive on the resiliency of the retail segment and bullish on the outlook for European retail specifically. However, it sees “some challenges as well,” including healthy competition in traditional retail, likely increasing competition in crypto with new regulation, expected volatility in results from crypto and market making elements of model, the relative level of marketing spend. As such, Citi sees a balanced risk/reward at current share levels.