Tomra (Sell, TP: NOK140.00) - RVM competition picking up
We expect Q1 EBITA of NOK331m, in line with consensus. We forecast divisional EBITA of NOK257m in Collection, representing YOY growth of ~24%, reflecting high activity in new DRS markets, particularly Romania (scheduled to implement DRS in 2023). We have cut our 2023–2024e EPS by 2–3% on lower order intake assumptions in Recycling and continue to believe that the market ascribes overly rich trading multiples to Tomra. We reiterate our SELL and NOK140 target price.Tomra Systems is a creator of sensor-based solutions for optimal resource productivity within the business streams of reverse vending, material recovery, compaction, recycling, mining, and food. Co.'s operating structure comprises two business areas and six business streams. The TOMRA Collection Solutions businesss area consists of three business streams: reverse vending, material recovery, as well as compaction. The TOMRA Sorting Solutions, business area consists of three business streams: food, recycling, and mining.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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