Doro: Stronger ownership structure

Research Update

2017-02-22

15:22

Doro, as expected from the profit warning, reported a soft Q4 EBIT of SEK 20 million (SEKm 41 adjusted for extraordinary costs). This was in line with our expectations, although on a revenue level of SEK 605 million (-5% below our prognosis). The order intake growth of 9 percent (44 % last year) and gross margins of 42 percent (exp. 37%) together with several Care tenders support a solid start of 2017. We lower our required rate of return to 11.4 percent (12.1 %) given a higher ownership Redeye Rating due to insider buying from the acting COB and Accendo Capital taking a corner position. This leaves us with a higher base case of SEK 82 (73) per share and an adjusted fair value range of SEK 50-118 (32-108).

VW

Viktor Westman

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