Tomra: I Still See An Upside Below 159 NOK/Share After Q2 2025

Tomra Systems (OTCPK:TMRAY), a market leader in reverse vending and recycling, is rated a "Buy" with a 159 NOK price target, suggesting a 15-20% annualized upside below 160 NOK. The company's growth is now primarily driven by its food sorting segment and legislative tailwinds in Europe and North America, mitigating recent softness in its core collection businesses. Despite a premium valuation, TMRAY's strong fundamentals and unique market position position it as a compelling long-term investment.

Analysis

Tomra Systems ASA (TMRAY) is positioned as a market leader in reverse vending and recycling, with a bullish outlook underpinned by long-term sustainability trends and supportive global regulations. The analysis highlights a pivotal shift in the company's growth drivers, with its food sorting segment now offsetting recent weakness in the core collection and recycling businesses. This growth is amplified by legislative tailwinds in Europe and North America. Based on these factors, the analyst assigns a "Buy" rating with a price target of 159 NOK, suggesting a potential 15-20% annualized upside for entry points below 160 NOK. While the report acknowledges risks, including a premium valuation and share price volatility, it argues that Tomra's strong fundamentals, dividend coverage, and unique market position make it a compelling long-term investment. The author's disclosed long position in the stock provides context for the strongly positive sentiment.

Key Decisions for Investors

• Investors with a long-term growth thesis may consider the stock attractive at entry points below 160 NOK to align with the analyst's projected 15-20% annualized upside.
• It is critical to monitor the performance of the food sorting segment in upcoming earnings, as its continued growth is presented as the key factor offsetting current weakness in the core collection business.
• Given the acknowledged premium valuation and volatility, investors should carefully assess the risk-reward profile and consider the author's disclosed long position when evaluating the bullish recommendation.