Xplora

In this fundamental analysis report, analysts Erik Sommerlou and Sam Drougge take
a closer look at Xplora, Europe’s leading provider of senior phones and children’s
smartwatches. Through its acquisition of Doro and planned acquisition of Emporia,
Xplora is expanding its device base while transitioning from one-time hardware sales
towards high-margin recurring subscription revenue through its proprietary MVNO.
The analysts argue that the market-implied senior SIM conversion rate of 3.0% is overly
conservative compared with Xplora’s approximately 25.0% online conversion rate and
12–15% conversion in pilot stores. Assuming a 10.0% conversion rate, service revenue
is estimated to reach NOK 1,185m and the EBITDA margin to expand from 12.6% in 2025A
to 21.6% by 2028E. A blended DCF and peer valuation results in a target price of NOK 70.8
per share, implying 71.0% upside.

Investment Thesis