Xplora Technologies: Accelerating the next growth phase - Nordea
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Xplora reported strong demand for its products and subscriptions in the Q3 report, and it reported gross profit of NOK 263m, 3% higher than Bloomberg consensus, driven by a better product mix. Xplora announced plans to broaden its product range with feature phones for kids, deepen its vertical products across different segments and add four to five new MVNOs over five years, thereby capturing a larger market in each vertical; we thus increase our Kids device sales estimate to 4% annually. Xplora also reached above 90% ownership in Doro. Xplora will introduce premium subscriptions to the Senior segment starting in Q2 2026; we increase the Senior conversion rate to 10%, and we now expect 1.1 million subscribers in 2028 and a 2024-28 service revenue CAGR of 34%. We derive a higher DCF- and multiples-based fair value range of NOK 49-101 (47-97), implying 2027E EV/EBIT of 8-15x.