TomTom jumps on 'surprise' 50 mln euro buyback

TomTom NV

30/10/2023 08:40

** Shares in TomTom  TOM2.AS  jump 7% after the Dutch
digital map maker announced a 50 million euro ($52.7 million)
share buyback plan
    ** TomTom intends to repurchase about 7% of shares and
reduce its capital by cancelling all shares bought back
    ** ING analyst Marc Hesselink notes the "surprise" buyback
follows good cash generation and strong end-Q3 net cash position
of 325 million euros
    ** Hesselink says this should also be seen in the light of a
very weak share price, which has dropped 23% to 5.29 euros since
Q3 results and over 12% in total this year
    ** "We believe the share buyback will be supportive for the
share price and is much wanted by shareholders given the low
valuation on future FCF," ING adds
    ** The stock is on track for its best day since mid-July

($1 = 0.9480 euros)

 (Reporting by Michal Aleksandrowicz)
 ((michal.aleksandrowicz@tr.com))