Swissquote Group Holding

Our EPS forecast is slightly cut following the reduction of revenues from crypto assets. However, we believe that Swissquote has the discipline to control its cost base and maintain strong margins (46.7% in 2022 and 47.8% in 2023). As such, the impact on the EPS is not so material while we keep on seeing it growing in 2023 and 2024.

Our target price is slightly reduced (with no impact on our recommendation) as we have updated Swissquote's model following the financial markets' turmoil (both stock and crypto markets). Our main adjustment comes from the reduction of revenues from crypto assets, which is partly offset by increasing customers, stabilising volumes of trading but also higher interest rates increasing asset-based revenues.

Our DCF valuation is reduced as a consequence of the EPS cut. Our forward-looking assumptions have not changed and remain conservative. Despite that, we still have a strong upside.