Dyno Nobel (DXL) Shares Recommendation

Dyno Nobel (DXL) have a maintained Outperform recommendation and a share price target of $2.73 from stock analyst, Macquarie Research Equities (MRE). According to MRE, "DXL is trading at parity to ORI on FY07 PER but is at a 9-14% discount to ORI on an EV/EBITDA and EBITA basis in FY07. DXL's 10.6x FY06 EBITA and 9.9x FY07 EBITA multiples are undemanding." MRE have also noted that the world's largest explosives company, Orica (ORI), have higher share prices after its annual profit have more than doubled as a result of strong resource sector demand. The strong ORI result has positive implications for DynoNobel. MRE forecasts US$92 million over the prospectus value of $82.8 million. . There is potential for a trading update to confirm this over the next month. ORI and DXL are also receiving some benefit from relatively high AN prices and weaker gas / ammonia prices compared to earlier in the year. For DXL, MRE estimate the benefit of keeping spot AN prices high vs weaker ammonia is cUS$4-5m on a full year basis. This is embedded in DXL being on track to beat FY06 NPAT in prospectus by 10 percent.

Dyno Nobel Limited is listed on the Australian Stock Exchange (ASX) under stock code . You can view their investor website here. DXL was listed on the ASX on 7 April, 2006. Peter Richards is the CEO for Dyno Nobel. The Company is a manufacturer and distributor of commercial explosives in North America and Australia. Dyno Nobel provides blasting solutions and quality explosives products, with over a million tons of ammonium nitrate capacity and 32 manufacturing facilities on 2 continents (including state-of-the-art initiation systems facilities in the United States, Australia and Mexico), throughout North America and Australia, as well as to selected customers internationally. In May 2003, Dyno Nobel and the USA-based Ensign-Bickford Industries (EBI) merged their explosives capabilities, creating the world's leading explosives solutions company. Both Dyno Nobel and The Ensign-Bickford Company (EBCo) have a major presence in blast-initiation systems and specialty blasting products. Read previous news nad stock recommendations for Dyno Nobel (DXL). Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!