Tomra shares drop, DNB "uncertain" over DRS market rollout

Tomra Systems ASA

13/10/2023 13:58

** DNB keeps "sell" for Tomra as it warns of uncertainty in
the timeline of new deposit return scheme (DRS) markets for the
Norwegian sustainable technology company's collection unit
        ** Tomra shares fall more than 5%
  
    ** The broker points to rollout delays, political
fluctuations, and alternative recycling evaluations as stumbling
blocks for EU's deposit return scheme expansion 
    ** It reduces its 2022-2025 CAGR estimate of ~13% from
previous 16%, factoring in delay risks
    ** Still, DNB expects the collection unit to continue its
growth, pointing to the planned implementation of DRS in Hungary
and Ireland in 2024 and Poland targeting a launch in January
2025
        ** Delays in the DRS in UK 
    hit Tomra shares in July
    ** DNB cuts TP to NOK 100 from NOK 140, while keeping a
"sell" recommendation
    ** Out of 12 analysts that cover Tomra Systems ASA, four
rate the stock "strong buy" or "buy," ​four rate "hold" and
four​ rate the stock "strong sell" or "sell"
    

 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))