Rainbows and Unicorns: Swissquote Group Holding Ltd (VTX:SQN) Analysts Just Became A Lot More Optimistic

Swissquote Group Holding Ltd (VTX:SQN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Investors have been pretty optimistic on Swissquote Group Holding too, with the stock up 14% to CHF155 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the current consensus from Swissquote Group Holding's three analysts is for revenues of CHF406m in 2021 which - if met - would reflect a huge 21% increase on its sales over the past 12 months. Per-share earnings are expected to jump 61% to CHF9.87. Previously, the analysts had been modelling revenues of CHF351m and earnings per share (EPS) of CHF7.05 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Swissquote Group Holding

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Swissquote Group Holding's growth to accelerate, with the forecast 21% annualised growth to the end of 2021 ranking favourably alongside historical growth of 15% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Swissquote Group Holding is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. More bullish expectations could be a signal for investors to take a closer look at Swissquote Group Holding.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Swissquote Group Holding going out to 2023, and you can see them free on our platform here..

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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