Impressive again
OPINION CHANGE
CHANGE IN OPINION
Buy vs Reduce


CHANGE IN EPS
2021 : CHF 11.2 vs 7.46 +50.6 %
2022 : CHF 11.0 vs 8.56 +28.3 %

Following Swissquote's H1 21 trading update, we are sharply revising upwards our expectations for FYs 2021, 2022 and 2023. With an impressive H1 21, Swissquote will indeed reach its pre-operating profit 2024 target at the end of 2021. Our previous forecasts were factoring in the company's March 2021 guidance which will therefore be sharply revised upwards on 6 August (H1 21 earnings release). We increase our revenue expectations for 2021, 2022 and 2023, but for 2024, which is not visible in our models yet, we expect the same of level of revenues as our previous expectations (as growth should wane following 2021's impressive numbers). However, we expect a CHF230m pre-tax profit vs CHF200m previously (as mentioned in our Latest, the sharp rise in revenues is probably mainly driven by the current buoyant trading in cryptocurrencies which offer high margins at the same time).


CHANGE IN NAV
CHF 175 vs 144 +21.7 %

Our NAV is based on our pre-tax profit. Hence, as we increase the pre-tax profit following the bullish trading update, the NAV is mechanically revised upwards.


CHANGE IN DCF
CHF 218 vs 180 +20.8 %

The DCF is based on EBITDA expectations. With the bullish trading update, we revise (sharply) upwards EBITDA expectations and increase mechanically our DCF valuation.