Australia's Orica rises; Jefferies says Terra buyout to strengthen Digital Solutions unit

ORICA

04/01/2024 02:25

** Analysts at Jefferies say Australian explosives maker
Orica's  ORI.AX  Terra insights acquisition will further
strengthen co's Digital Solutions division 
    ** Shares of Orica  ORI.AX  rise as much as 0.3% to A$15.75
    ** Brokerage increases price target by 16% to A$18.80, rates
stock as "buy"
    ** Brokerage says the Digital Solutions business is
currently 9% of group operating EBITDA, which they forecast will
rise to 12% by FY26 
    ** Jefferies' initial forecasts assume the deal to be
earnings per share neutral in FY25 
    ** With combination of co's GroundProbe operation and Terra
giving Orica leading position in geotechnical and structural
monitoring business, deal makes strategic sense - Jefferies   
    ** Eleven of 12 analysts rate the stock "buy" or higher and
one "hold"; their median PT is A$17.99 - LSEG Data
    ** ORI stock down 1.4% YTD, as of last close  
   
    

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))