Tomra (Sell, TP: NOK310.00) - Cost and supply headaches
A soft Q1 included group EBITA of NOK237m, ~8% below our estimate and consensus, primarily reflecting disappointing performances in Collection and Food as a result of supply-chain shortages, cost inflation and logistical challenges. Recycling & Mining beat our gross contribution estimate by 6% and reported a record-high order intake of NOK644m, underpinning the recent strong momentum in the segment. We have lowered our 2022e–2023e EPS by 4–3%, and thus also our target price to NOK310 (320). We continue to view the valuation as stretched and reiterate our SELL.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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