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Doro: King of the Hill - Redeye

Redeye only makes minor estimate changes, following Doro’s Q1’21 report. We maintain our valuation, even though Q1 Care sales were unsatisfactory. We have received higher conviction regarding our Care estimates due to the main Nordic competitor, Tunstall, being excluded from the new Swedish framework agreements, making Doro the king of the hill. This strengthens the spin-off case, in our view.

In relation to our reasonably pessimistic scenario of SEK 38 per share and our base case of SEK 70, today’s share price provides a favorable risk/reward. We believe Doro will spin off Doro Care in Q4’21. Bull case: 93 SEK.
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