Orica (ORI) Stock Recommendation

Orica (ORI) have an unchanged Buy, Medium Risk stock recommendation and a share price target of $26.80 from Citigroup Investment Research (CIR). Orica's reported FY06 result with NPAT was in line with CIR's forecast. The resolution of the environmental issues at Botany would remove uncertainty. CIR believes that in the next 3 to 6 months, solutions for all three problems will have been approved and underway. Over the past 12 months, Orica has reduced working capital with the ratio (w.c. / sales) falling from 13.4 percent to 11.6 percent. It is only half-way through this programme and with world best practice around ~10%, CIR expects further improvements next year.

Orica Limited is listed on the Australian Stock Exchange (ASX) under stock code ORI. You can view their investor website here. Orica (ORI) is the world's leading supplier of commercial explosives and is also the largest chemical company in Australia and New Zealand. It manufactures and supplies commercial explosives, industrial and specialty chemicals, agricultural chemicals and fertilizers, decorative paints, and plastics. Orica has significant operations in Australia, New Zealand, South East Asia, North and Latin America. Orica’s Consumer Products business is Australia and New Zealand’s leader in decorative, preparation, and lawn and garden care products. The business manufactures and markets icon brands that include Dulux, Berger, British Paints, Levene, Walpamur, Cabot’s, Feast Watson, Intergrain, Acratex, Selleys, Rota Cota, Poly, Turtle Wax, Yates, Thrive, Zero and Dynamic Lifter in Australia and New Zealand. An extensive range of powder coatings is manufactured and marketed in Australia, New Zealand and the Asia-Pacific region. ORI was listed on the ASX on 28 November, 1961. 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!