Tomra rises 6% to top of STOXX after Barclays' hike to 'overweight'

Tomra Systems ASA

24/01/2025 09:22

** Norwegian recycling technology maker Tomra Systems
 TOM.OL  rises over 6%, among top performers on STOXX 600
    ** Barclays upgrade to "overweight" from "equal weight" is
pushing the stock, according to two other analysts
    ** Barclays expects Tomra's Collection business to grow
above consensus due to upcoming Deposit Return Schemes in
several countries
    ** Says the DRS laws implementations may result in Tomra's
Collection achieving high-teen growth rates or higher over FY
2024-29
    ** Adds Tomra's Recycling and Food divisions close to end of
earnings downgrade, though it doesn't see short-term improvement
    ** Barclays sees earnings potential in Tomra's feedstock
ventures, if "proven successful at scale", although they will be
loss-making initially
    ** The broker expects revenue growth in Tomra at 13% over FY
2024/27 and adjusted EPS at 24%, largely driven by Collection

 (Reporting by Vera Dvorakova)
 ((vera.dvorakova@thomsonreuters.com))