Jefferies backs Orica after bagging FY27 ammonium nitrate supply contracts

By Reuters News

** Jefferies bets on Australia's Orica ORI.AX after it secured ammonium nitrate supply contracts for FY27

** On Monday, the commercial explosives supplier sourced ammonium nitrate supply for contracted customers in North America for FY27

** Brokerage says ORI remains exposed to favorable industry tailwinds, notes security of supply becoming a competitive advantage in explosives after fragmenting global supply

** Expects strong demand for ammonium nitrate from Australian and North American markets into 2H26

** Adds that resolving recent supply disruptions will boost investor confidence and support valuation re-rating for the stock, reiterates "buy" stock rating with PT of A$25.21

** All 14 analysts rate the stock "buy" or higher; their median PT is A$26.2, as per data compiled by LSEG

** YTD, stock down 4.4% as of co's last close

Capital Com is an execution-only service provider. The present material must be regarded as marketing communication and should not be interpreted as investment research or investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page, then you do so entirely at your own risk