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UBS downgraded Swissquote Group Holding SA (SQN:SW) from neutral to sell on Monday, setting a price target of CHF410.00 as the Swiss online bank faces potential headwinds after a strong start to the year.
The downgrade comes as Swissquote shares have risen 35% year-to-date, driven by robust trading activity and cryptocurrency momentum, according to UBS analyst Haley Tam.
UBS identified several downside risks for Swissquote, noting that competitors have reported slower trading activity in May, while exchange data shows a 41% decline in cryptocurrency volumes year-to-date.
Lower Swiss interest rate expectations present an additional challenge for Swissquote’s net interest income, according to the research note from UBS.
The investment bank also warned that Swissquote’s price-to-earnings multiple "could be vulnerable if earnings mix shifts to banking," suggesting potential valuation pressure if the company’s revenue composition changes.
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