Morningstar upbeat on Australia's Orica's trading update; flags long-term headwinds

ORICA

08/09/2025 19:57

** Morningstar says explosives provider Orica's ORI.AX trading update is "pleasing"

** ORI said last week it expects earnings to be higher than last year across all of its segments

** Investment research firm says, however, co's shares are overvalued and flags longer-term demand headwinds

** "Long-term mining demand might not remain strong enough to justify Orica's expansion plans" — Morningstar

** Morningstar raises fair value estimate by 3% to A$18.50

** 13 of 13 analysts rate the stock "buy" or higher; their median PT is A$22.86 — LSEG data

** Stock up 26.9% this year, as of last close

(Reporting by Rajasik Mukherjee in Bengaluru)

((Rajasik.Mukherjee@thomsonreuters.com))