Citi backs Orica post investor day, MS chooses firm as preferred industrial

ORICA

12/03/2025 21:53

Updates with Morgan Stanley comments

** Analysts at Morgan Stanley say Australia's Orica ORI.AX is their preferred pick among the local industrials sector

** Says the infrastructure provider confirmed its business is well positioned to deliver strong earnings growth with the recent buyback a positive

** Adds ORI has had a difficult start to 2025 but the next catalyst would earnings on May 8

** Brokerage retains "over-weight" rating on stock and A$22.5 PT

** Citi analyst say they are increasingly more positive on Orica after some positive developments at the 2025 investor day

** Citi gives a target price of A$19.00 and a "neutral" rating for Orica

** The company flagged that its first-half earnings are running ahead of expectations helped by cost management and supply resiliency, Citi says

** 11 of 13 analysts rate the stock "buy" or higher and two "hold"; their median PT is A$20.91 — LSEG data

** Stock up 0.6% YTD, as of last close

 (Reporting by Adwitiya Srivastava and Rishav Chatterjee in Bengaluru)

 ((Adwitiya.Srivastava@thomsonreuters.com))