Airthings (Buy, TP: NOK4.00) - Impressive performance in light of macr...

Relief is the best way to describe Airthings’ Q2 report, in our view, with YOY top-line growth, a gross margin gain, and a smaller OPFCF loss, despite the challenging macroeconomic backdrop. Furthermore, the Q3 guidance was above our expectations, and execution on cost optimisation YTD has given us greater confidence in its ability to accelerate EBITDA breakeven to H2 2023. We reiterate our BUY and NOK4 target price.

Airthings (Buy, TP: NOK4.00) - Near-term headwinds, but our underlying...

While we remain firmly confident in the underlying market trends and Airthings’ positioning, we see no choice but to lower our expectations on continued bearish reads on consumer spending. We have therefore cut our top-line estimates by 30–35%, and in turn our target price to NOK4 (8), which equals the invested capital, while our DCF still suggests ample upside potential. We reiterate our BUY.

Airthings (Buy, TP: NOK8.00) - Decent report, but estimates cut

While the Q3 results were impressive in themselves, with sales above our estimate and Airthings appearing to have made a decent effort to optimise costs, we have lowered our 2022–2024e top line due to the macro environment. Therefore, we have reduced our target price to NOK8 (8.6), but reiterate our BUY.

Airthings - EBITDA beat, demand still holding up

Organic growth of 10% y-o-y vs. -10% in Q2 Strong AfB growth. Consumer device registrations +26% … but cons may lower 2023 estimates on softer macro

Airthings - AfB stepping up in challenging times

Q3 revenue likely in high end of USD 7-11m guidance… …as AfB somewhat outweighs neg. consumer sentiment Consumer uncertainty remains, we stick to HOLD

Sector Fast Comment - ABGSC’s Investor Day feedback

Rovio and EG7 attended ABGSC’s Investor Day COVID-rebasing in mobile gaming to normalise soon Important changes presented by new EG7 management

Nothern Ligths

Airthings (Buy, TP: NOK8.60) - Look beyond near-term uncertainty

While Q2 revenues had been pre-announced, Airthings reported underlying gross profit largely in line with our estimate and consensus, but the underlying EBITDA loss was slightly worse than consensus and better than our estimate. The mid-point of the Q3 sales guidance (USD7m–11m) is ~12% below consensus, seemingly driven by channel inventory and broader macro uncertainty in the B2C segment. However, end-user take-up continues to trend in the right direction, and B2B is showing superior growth. We...

Airthings - Q2 Consumer sales down 19% y-o-y

Q2 sales largely in line, EBITDA below Consumer sales -19%, wide Q3 range reflects uncertainty Expect a fairly neutral share price reaction

Northern Lights

Airthings (Buy, TP: NOK9.00) - End-user growth

We have cut our estimates significantly following Airthings’ recent channel inventory adjustment-related profit warning and now forecast negative sales growth for Q2. However, app-install data (up ~68% YOY in the last 30 days) continues to support our view that end-customer demand remains strong; thus, we reiterate our BUY but have cut our target price to NOK9 (21).

Airthings - Down to HOLD due to consumer uncertainty

We lower our ’22-’23 sales estimates by ~33-34% Market will likely await signs of consumer recovery Down to HOLD due to increased short-term uncertainty

Airthings - Q2 sales guidance lowered by 19%

Inventory adjustment in consumer channels Weaker Consumer demand: H2 sales also at risk High consumer exposure: negative share price reaction

Airthings - Strong AfB, but headwinds for Consumer in Q2

Sales in line, while costs were lower Strong AfB momentum, but headwinds for Consumer Expect cons to lower Consumer sales est.

Airthings - Heads up for accounting changes in Q1 2022

IFRS conversion will affect both revenue and EBITDA Q1 guidance is NGAAP while reported will be IFRS Comparable guidance USD 8.1-9.1m in sales (ABGSC calc.)

Airthings - Q4 hurt by supply chain challenges

Q4 sales NOK 97.1m, 12% below cons Target NOK 80-90m in Q1 sales vs. cons. at NOK 85m Cons to lower ‘22e EBITDA 2-5% to reflect supply risk

Airthings - Improved confidence in profitability story

110% org. growth and strong profitability gains in Q3 Raise our ‘22e EBIT by 4% Reiterate BUY and new target price of NOK 17 (16)

Airthings (Buy, TP: NOK21.00) - B2B continuing to steam ahead

Q3 revenues were 9–10% above our estimate and consensus, while EBITDA reached a quarterly break-even, demonstrating scalability. The supply chain seems to be somewhat of a headwind for Q4, leaving our top-line estimates for 2021 mostly unchanged despite the Q3 beat. However, most importantly, Airthings for Business continues to steam ahead and we expect the continued momentum in this segment to drive a share price re-rating in the near term. We reiterate our BUY and NOK21 target price.

Airthings - Strong Q3: sales 9% above cons and EBIT beat

110% y-o-y sales growth, strong profitability improvement Target NOK 110-115m in Q4 sales vs cons at NOK 123m Small positive share price reaction

Airthings - Attractive valuation and strong LT growth story

Q3 should be strong and Q4 is seasonally strongest On track to reach FY sales guidance of 53% y-o-y growth Reiterate BUY with TP of NOK 16 (17)