Update shared on 01 Nov 2025
Fair value Decreased 4.86%Analysts have revised Tomra Systems' fair value estimate downward from NOK 163.26 to NOK 155.33 per share, citing ongoing competitive pressures, market rollout risks, and subdued earnings momentum as key drivers of this change.
Analyst Commentary
Recent analyst updates highlight a range of perspectives on Tomra Systems' outlook, focusing on both positive catalysts and ongoing challenges that could impact the company's performance and valuation.
Bullish Takeaways
- Bullish analysts have upgraded the stock rating, reflecting increased confidence in Tomra’s longer-term growth prospects even amid current uncertainties.
- A price target in the NOK 155 range suggests expectations for stabilization or recovery in Tomra’s valuation. This balances near-term risks with potential for future upside.
- There is an underlying belief that Tomra’s market position and strategic initiatives can drive growth once current rollout and competitive pressures subside.
Bearish Takeaways
- Bearish analysts emphasize persistent risks related to new market rollout, which may constrain Tomra’s revenue visibility in the near term.
- Competitive intensity has increased. This poses potential challenges to margin expansion and market share retention.
- Subdued momentum in the recycling division, coupled with broader structural headwinds, has led some to argue the shares warrant a discounted valuation.
- Current earnings trajectory is considered weak, and analysts caution that a turnaround may take longer than expected.
What's in the News
- TOMRA has secured an order to supply 3,000 reverse vending machines (RVMs) to Dino Polska, a major Polish retail chain. Installation will begin in the coming weeks and continue through the first half of 2026, supporting Poland's newly launched deposit return system (Key Developments).
- Tomra Collection Poland is actively assisting retailers across Poland in preparing for the deposit return system, offering tailored RVM solutions for both low and high volumes (Key Developments).
- Tomra Systems ASA has been added to the Oslo OBX Total Return Index, reflecting its profile among leading Norwegian-listed companies (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: Fair value estimate lowered from NOK 163.26 to NOK 155.33 per share, reflecting a modest decrease.
- Discount Rate: Increased slightly from 7.80% to 7.87%, indicating a minor increase in perceived risk.
- Revenue Growth: Upgraded from 13.67% to 16.88%. This change suggests stronger future top-line expansion expectations.
- Net Profit Margin: Declined from 12.03% to 11.53%, pointing to slightly reduced profitability forecasts.
- Future P/E: Lowered from 21.48x to 20.04x. The stock is now projected to trade at a lower multiple on forward earnings.
Disclaimer
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