Swissquote Group Holding

We are changing our recommendation on Swissquote as, despite a stellar performance ytd led by a sharp increase in trading activity, we believe there is still room for some upside.
Trading should remain buoyant in the short term, adding to the short-term earnings momentum and, more importantly, the (sharp) increase in the number of accounts opened in 2020 should prove sustainable in the future and drive management's guidance for 2022 to a higher level (unchanged since 2019 despite targets being already reached in 2020).

We have long used a beta of 1 for Swissquote for the DCF calculation. As revenues and, more importantly, the opening of new accounts are gathering momentum, earnings should prove more stable in the future.
Hence, we now use the beta given by our model (at 0.87 currently).