Tomra (Sell, TP: NOK75.00) - Good news was a reverse from Q3
After Tomra’s share price sold off by 23% on the Q3 results, it was up by 31% on the strong Q4 report. Post-Q3 consensus was negative revenue growth YOY for all segments. We expect consensus 2024–2025e EPS to come up c10%+, and have raised our 2024–2025e EPS by 4%, based on the guidance. We still find a P/E 2024e of 28x demanding when 2024e revenue growth is a modest 3% YOY, and we believe the longer-term growth prospects are also uncertain given DRS roll-out delays and uncertainties. We reiterate our SELL and NOK75 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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