Redeye - Doro makes a strong comeback

Q2 was a good comeback for Doro compared to their weak Q1. In our bull case theres an 110 % upside.

Sales in Q2 amounted to SEK 277 million, in line with our expectations of SEK 272 million. EBIT reached SEK 15 million, compared to our estimates of SEK 16 million. All in all, Q2 was a strong comeback from Q1 with no signs of smartphone declines.

In Q2 Doro was listed by Telekom Deutschland and A1, meaning that Doro kicked out the competitors. Doro’s arch enemy Emporia, was for instance dethroned in their home market. Together with the strong growth in order intake of 24 percent from Q1 this supports Doro’s growth outlook for the rest of 2014.

Our slightly revised estimates does not change the DCF value of SEK 46. Today’s share price indicates an upside and a downside of 110 and 20 percent respectively (in our bull and bear case).