Australia's Dyno Nobel soars after Jefferies raises PT ahead of plant review

Dyno Nobel

18/09/2025 04:02

Updates

** Shares of fertiliser producer Dyno Nobel DNL.AX rise as much as 3.1% to A$3.010, their biggest intraday pct gain since August 21

** Jefferies raises PT to A$3.15 from A$2.60, keeping a "Hold" rating ahead of its Phosphate Hill plant review completion by September-end

** Review is about evaluating whether to sell, invest in, or shut down the Queensland plant, with closure being the most likely outcome if the company decides to exit the fertilisers business - brokerage

** Keeping the plant running could boost earnings by A$0.35/share, making it a tough decision for management and shareholders - Jefferies

** Despite expecting closure as the base case, brokerage raises PT, on strong FY25 and FY26 estimated earnings from elevated fertiliser prices, if DNL can continue to operate the plant

** 4 of 9 analysts rate "Buy" on shares, the rest rate "Hold"; median PT is A$3.05 - data compiled by LSEG

** YTD, the stock edged up 1.9% as of the latest close

(Reporting by Kumar Tanishk and Nichiket Sunil in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))