Business
SB1 cuts Tomra to 'sell' on investment risks amid mounting debt; shares fall
SB1 cuts Tomra to 'sell' on investment risks amid mounting debt; shares fall
About this update from Tomra Systems Asa
** SB1 downgrades Norwegian recycling group Tomra OSL:TOM to "sell" from "neutral", citing "risky" investments and mounting debt ** TOM shares fall 4.6% in afternoon trade; down 10% YTD ** Brokerage lowers TOM's EPS estimate for 2026 by 4%** Says Tomra's net interest-bearing debt has grown to almost 600 million euros ($703.92 million), or 2.2x EBTIDA, while revenue growth has stagnated** Says co's investment in plastic sorting facility at Omra, Norway, has proven unprofitable without gate fees ** Adds TOM's German plastic facility seems even more speculative than Omra because of exposure to the volatility of plastic prices** Consensus remains overly optimistic for 2026-2027 - SB1 ($1 = 0.8524 euros)