Kepler upgrades Swissquote to 'buy' after crypto selloff

Kepler Cheuvreux upgraded Swissquote Group Holdings to a 'buy' rating on Tuesday, citing a more attractive risk-reward profile after a crypto-driven selloff drove the Swiss financial services provider's shares lower.

The brokerage firm maintained its price target at 450 Swiss francs ($495), though it noted that the recent downturn in digital asset markets had created a more favorable entry point for the stock. Swissquote's share price has declined by roughly 15% over the past month, pressured by volatility in cryptocurrency valuations.

Kepler attributed the upgrade to Swissquote's diversified business model, which includes wealth management and trading services beyond its crypto-related operations. The firm highlighted that the selloff had overshadowed the company's underlying financial performance, which remains robust despite macroeconomic headwinds.

Swissquote, which operates in over 100 countries, has seen its crypto trading volumes fluctuate alongside market sentiment. While digital assets remain a key revenue driver, Kepler emphasized that the company's traditional banking and investment services provide a stable foundation.

The upgrade reflects a broader shift in sentiment among analysts, who have grown more optimistic about Swissquote's prospects as crypto market conditions stabilize. Kepler's decision follows a period of heightened volatility in digital assets, which had weighed on the company's valuation.

Swissquote is scheduled to release its next earnings report later this month, with market watchers anticipating further insights into its financial health and exposure to crypto markets.