In a report released today, Adela Dashian from Jefferies maintained a Hold rating on Tomra Systems ASA, with a price target of NOK135.00.
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Adela Dashian has given his Hold rating due to a combination of factors tied to Tomra Recycling’s newly announced cost-cutting program and its underlying challenges. The division plans to streamline operations worldwide, including a workforce reduction of about 175 full-time roles, aiming for annual savings of EUR 16m by 2027 while absorbing roughly EUR 15m in one-time restructuring charges.
Dashian views these measures as a necessary response to a prolonged slump in customer spending across the recycling sector and as a way to restore profitability rather than drive immediate growth. Management’s reiterated goal of lifting EBITA margins back above 20% suggests meaningful long-term earnings support, but the benefits will materialize gradually and depend on successful execution, leading her to maintain a balanced, Hold stance ahead of further detail expected with the Q4 results on February 13.