Doro: The market is in a senior moment

Research Update

2016-10-31

10:02

The expectedly weak Q3 EBIT of SEK 14 million was in line with our prognosis of SEK 17 million, albeit sales of SEK 474 million, corresponding to an organic growth of 2.8 percent, was 5 percent lower than our estimates. We are not worried regarding the weak order intake growth of -3.3 percent as the order intake from the phones (i.e. excl. Care) was up some 5 percent. We take note of the strong cash flow of SEK 37 million but especially the gross margin of 39.3 percent (exp. 37.2 %), again verifying our thesis of a healthy phones business. With the Care appeal out of the way we expect margins to expand during the coming quarters, meaning the stock market should recover from its senior moment, noticing the share price in relation to our unchanged base case of SEK 73 and fair value range of SEK 32-108.

VW

Viktor Westman

Disclosures and disclaimers

Premium Plan required to unlock

Unlock companies to access

more high quality research.