Morningstar sees Orica's Terra Insights acquisition of neutral value

ORICA

20/12/2023 21:09

** Morningstar sees immaterial contribution to sales in FY24
and no contribution to earnings from Australian explosives maker
Orica's  ORI.AX  Terra Insights acquisition
    ** Brokerage maintains fair value estimate of A$16.50 per
share for ORI
    ** Sees Terra Insights contribute around A$100 mln ($67.65
mln) of revenue and A$40 million of EBITDA from FY25
    ** Says potential revenue synergies, including cross-selling
opportunities with co's existing technology businesses, offer
upside potential
    ** 11 of 12 analysts rate the stock "buy" or higher, 1
"hold"; their median PT is A$17.92 – LSEG data
    ** Stock has risen 7.6% YTD, as of last close

    
($1 = 1.4782 Australian dollars)

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))