Northbaze's Q2'19 report delivered mixed results. On the positive side, the Audio & Sound segment reported sales above our estimate. New wireless headphone models have received overall good review-scores, and more models are on their way, accompanied by the release of smart speakers this fall. Consequently, we increase our forecast for Audio & Sound.
The Smart mobility segment delivered below expectations, increasing the uncertainty regarding the newly made acquisitions Krusell and Kavaj. All in all, the uncertainty leads us into a more cautious stance, decreasing our base case valuation, while bear and bull case remain intact.
