Swissquote : Impressive growth to continue but fairly priced in for now
Swissquote is a digital banking group and trading platform with Swiss roots and growing international operations. We see its success story to continue thanks to: 1/ double digit earnings growth and further margin expansion (2025-2028e CAGR for net profit guidance of 12% and a 2028 pre-tax margin of 55.5% (ODDO BHF est.) vs 52.6% expected in 2025 and 25% in 2018); 2/ a strong balance sheet (2025e capital ratio of c.23%), that could be used for further bolt-on acquisitions or to return “surplus” capital by 2027 at the latest; 3/ the combination of an innovative mindset of a tech company with a fully regulated Swiss bank. Nevertheless, at the current share price (impressive run of +1,514% since 2018), we see the company’s strong fundamentals and prospects fully priced in for now. Therefore, we are initiating coverage with a Neutral rating and a target price of CHF 555.Swissquote Group Holding is engaged in the provision of Online Financial Services. Co. provides online securities trading services (including custody services) and quantitative asset management services (ePrivate Banking among others) to self-directed private investors, independent asset managers, investment funds, and third party financial institutions. Co. provides access to over-the-counter FX markets through in-house technology platform to retail customers, money managers, and third-party financial institutions. In addition, Co. operates an online bank that accepts deposits in the form of current accounts and saving accounts from its customers.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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