Today Cherry announced that they are lowering their 2017 guidance. The company expects to produce sales figures in the region of SEK 2500m, down 6% from the earlier numbers and EBITDA is expected to come in at around SEK 480m from earlier SEK 550-600m. The main reason for the lowered guidance is that the integration of ComeOn! has taken longer time than expected, so the larger cost and sales synergies have not yet taken full effect. We will trim our short-term projections and Fair Value estimate to a minor degree, but remain optimistic about Cherry’s prospects and find the valuation as increasingly attractive. The real strength of Cherry is the diversified business with five of different segments; one should not focus on a minor hiccup in one of those business units but rather on the whole picture.