Morningstar hikes fair value estimate for Australia's Orica
BUZZ-Morningstar hikes fair value estimate for Australia's Orica ** Morningstar increased fair value estimate for Australia's Orica ORI.AX to A$21, lower than stock's last close of A$22.47
** Investment research firm cities time value of money and the reduction of assumed weighted average cost of capital to 9.0% from 9.1%
** Says the current stock price is above fair value but remains in "3-star territory" and while margins are likely to lift, it expects some longer-term demand headwinds
** Referring to Orica's cost reduction program, Morningstar expects co to achieve efficiencies mainly through structural and overhead reductions, footprint rationalization, and procurement improvements
** All 14 analysts rate the stock "buy" or higher with a median price target is A$26, as per data compiled by LSEG
** Down ~7% YTD, as of last close
(Reporting by Anjali Singh in Bengaluru)
Recent news on ORICA
See all newsJefferies backs Orica after bagging FY27 ammonium nitrate supply contracts
Brief: Orica Does Not Expect Material Impact On FY27 Margins From Increased Sourcing Costs
Australia's Orica climbs to near 2-month high after company secures ammonium nitrate supply
Brief: Forrestania Advances Agreements & Restart Readiness
Morningstar hikes fair value estimate for Australia's Orica