Doro: Grows like an old hand

Research Update

2016-02-22

10:58

Doro’s sales growth keeps on surprising us on the positive side with sales in Q4 of SEK 625.6 million (exp. 573.7), equal to a 43 percent growth; 32 percent organic. The EBIT margin of 9.4 percent, however, was lower than our prognosis of 10.1 percent but the good news is that this was on the OPEX side, i.e. the gross margin recovered to a strong 38.5 percent (exp. 37.1 %). The tremendous growth which will be prolonged by investments in Care, such as the just announced acquisition of Norway’s largest private alarm center has strengthened our rating. We have revised our fair value range to SEK 32-108 (prev. 25-90) with a new base case of SEK 83 (58). An accelerating smartphones penetration, like in France were it in 2015 doubled among seniors with age of 70+, could mean we would be seriously wrong on the upside (again).

VW

Viktor Westman

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