Tomra Shares drop despite long-term target reaffirmation

Investing.com -- Shares of Tomra Systems ASA (OL:TOM ) fell on Thursday after reaffirming its long-term financial targets.

At 4:41 am (0841 GMT), Tomra Systems was trading 5.3% lower at NOK 149.90.

At the Capital Markets Day, Tomra reconfirmed its aim to grow sales by 15% annually and achieve an EBITA margin of 18% by 2030, an extension from the previously set 2027 target. 

The company also introduced a new goal of attaining a Return on Capital Employed exceeding 18% by 2030 and maintained its dividend policy with a payout ratio of 40-60%. 

Analysts at Jefferies value the stock using a fundamental Discounted Cash Flow (DCF) analysis, which yields a fair value of NOK 155 per share, corresponding to a target multiple of 22x EV/EBIT for 2025 estimates. 

However, several key risks could impact this valuation. These include the potential improvement in macroeconomic conditions, the easing of supply chain disruptions, and more favorable regulatory environments

Source: Investing.com