Citi, Jefferies cut PT on Australia's Orica

ORICA

10/03/2026 18:50

** Analysts at Jefferies say Orica's ORI.AX cashflow impacts are disappointing, while Citi says the market is "rightly concerned" with respect to additional supply costs for the mining explosives producer

** Citi lowers PT to A$25.05/shr; Jefferies cuts PT to A$25.73/shr from A$28.50/shr

** Jefferies, however, says underlying conditions remain supportive for company and industry

** Citi says ORI's trading update demonstrates strength in its underlying businesses with cost-reduction initiatives in place

** Citi lowers PT on lower valuation to reflect headwinds with respect to North American supply disruption

** Jefferies says poor cash guide raises questions about earnings quality

** ORI flagged net impact of significant items in H1 2026 as a reduction in statutory net profit after tax of between A$45 mln and A$60 mln ($42.92 mln) on Tuesday

** As of last close, shares down 13.8% YTD

($1 = 1.3978 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru)

 ((shivangi.lahiri@thomsonreuters.com))