Citi, Morningstar optimistic on Australia's Orica over positve quarterly results

ORICA

09/05/2024 23:14

(Updates with Morningstar comments)
    ** Brokerage Citi raises price target for Orica Ltd  ORI.AX 
to A$19.50 from A$19.00
    ** Maintains "neutral" rating 
    ** Analysts at Morningstar increase fair value estimate by
3% to A$17.00 on positive qtrly results
    ** Mining solutions provider posted HY statutory NPAT of
A$337.5 mln ($221.94 mln) vs A$122.6 mln reported last year
   ** Recorded EBIT of A$353.7 mln, up 10% YoY and 7% ahead of
Visible Alpha's consensus estimate
    ** Citi increases FY24/25/26 EBIT forecasts by 5%, 2% and
5%, respectively 
        ** However, Morningstar cuts fiscal 2024 EPS estimate to
A$0.87 from A$1.03 on results missing its forecast due to
higher-than-anticipated costs from ammonia plant maintenance 
  
        ** Assume 12% EBIT growth to A$740 mln, considerably
below our prior A$820 mln estimate - Morningstar
  
    ** 10 of 12 analysts rate the stock "buy" or higher, 2
"hold"; their median PT is A$19.75 – LSEG data
    ** Stock has risen 15.43% YTD, as of last close

 (Reporting by Poonam Behura and Roshan Thomas in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))