Aspiro: Growth target in jeopardy

Aspiro’s Q2-report showed 28 per cent growth y/o/y, but slowed growth q/o/q. Management remains positive about 80 per cent growth for Music this year, while we are a bit more cautious. A rights issue of SEK 100 million will finance the aggressive expansion plan and might compensate for the (so far) lack of distribution partners in Germany and Poland. Current investments must result in solid growth and future profitability to me motivated. Our DCF-model show a slump in fair value, while valuation of expected sales motivates a stock price way above today’s price.