Jefferies raises PT for Australia's Dyno Nobel ahead of fertiliser plant review

Dyno Nobel

17/09/2025 20:32

** Jefferies raises Dyno Nobel's DNL.AX 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 is able to continue to operate the plant

** YTD, the stock edged down 0.3% as of the latest close

(Reporting by Kumar Tanishk in Bengaluru)

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