Goldman Sachs has downgraded eToro Group (ETOR) to a “neutral” rating from “buy,” citing intensifying competition and rising cost pressures across the company’s core markets.
Alongside the rating change, Goldman lowered its 12-month price target to $39 per share, down from $48. As of the morning of January 5, 2026, eToro shares were trading around $36.14, leaving limited upside relative to the revised target.
Competitive Pressures Drive Rating Cut
According to Goldman analysts led by James Yaro, the downgrade reflects growing competitive intensity across eToro’s primary trading products and geographic markets. The firm warned that heightened competition could translate into higher customer acquisition costs, weighing on profitability over the medium term.
Goldman also flagged potential challenges tied to eToro’s planned U.S. expansion, where competition among retail trading platforms remains particularly aggressive.
Growth and Margin Outlook Trails Peers
The bank’s analysis highlighted a relative slowdown in eToro’s forward growth profile. Goldman estimates eToro’s compound annual growth rate (CAGR) for 2025–2027 at 7%, modestly below the 8% peer average.
Profitability metrics also factored into the more cautious stance. Goldman projects eToro’s 2025 pre-tax margin at 36%, significantly underperforming the 54% average forecast for comparable peers, suggesting limited operating leverage in the current environment.
Coinbase Upgrade Highlights Diverging Paths
The downgrade comes in contrast to Goldman’s more optimistic view on Coinbase Global (COIN), which the bank recently upgraded to “buy.” In Coinbase’s case, Goldman cited a shift toward structural growth, driven by expansion into areas such as derivatives, tokenization, and broader crypto infrastructure.
The opposing moves underscore a widening divergence within the digital trading sector, as Goldman increasingly favors platforms with scalable infrastructure revenues over those more exposed to competitive retail trading dynamics.
