Jefferies reaffirms 'buy' rating for Australia's Dyno Nobel after fertilizer exit

Dyno Nobel

09/03/2026 18:38

** Jefferies reiterates "buy" rating for shares of explosives firm Dyno Nobel DNL.AX

** Co on Monday announced sale of Phosphate Hill operations to Mayfair Australia for nominal consideration of A$1, with possible deferred consideration of up to A$100 million ($70.36 million)

** Sale of Phosphate Hill concludes co's separation from fertilizers business

** Jefferies notes a clean exit from business, sees reduced future risks

** Highlights strong performance and "inexpensive" valuation of core explosives business

** Brokerage, however, cuts price target to A$3.90 from A$4.00 on lower market multiples, higher than 10 analysts' median PT of A$3.55, as per LSEG-compiled data

** YTD, shares down 4.7%

($1 = 1.4213 Australian dollars)

(Reporting by Nichiket Sunil in Bengaluru)

((Nichiket.Sunil@thomsonreuters.com))