Stock of the day: Orica Limited
Orica's strong position in the explosives industry offers unique investment opportunities and strategic growth options amid global challenges.
(AI video summary)
This video was created on 10 March for IG audiences by ausbiz.
ASX code: ORI
Orica's growth potential and market position
Orica, a prominent player in the explosives industry, recently saw its shares rise following a broker update from Macquarie, which increased its price target to $20.91. The update anticipates a stronger performance in Orica's blasting business, with earnings expected to be more robust in the second half (H2) of the financial year.
The company is also considering a potential share buyback, which is likely to be discussed at its upcoming investor day, focusing on digital solutions.
Industry outlook and investment considerations
Operating in a challenging sector, Orica provides essential services to the mining industry and benefits from a strong global presence. Despite global growth concerns and uncertainty in China, Orica's recent results were solid, easing initial market worries. Analysts generally view Orica as a solid 'hold' with growth potential as market conditions improve.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Explore the markets with our free course
Discover the range of markets you can trade CFDs on - and learn how they work - with IG Academy's online course.
Turn knowledge into success
Practice makes perfect. Take what you’ve learned in this shares strategy article, and try it out in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account. Upgrading is quick and simple.
- Trade over 11,000 popular global stocks
- Protect your capital with risk management tools
- Trade on 140+ key US stocks out-of-hours, so you can react to news
Inspired to trade?
Put the knowledge you’ve gained from this article into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
