Market indicators till the end of March look consistent with Orica’s February update and Credit Suisse makes no change to the forecasts ahead of the first half result on May 13.
The broker believes Orica’s main debt covenant is based on leverage and so impairments should not create a balance sheet issue.
Outperform rating with a target of $16.84.
Target price is $16.84.Current Price is $13.95. Difference: $2.89 – (brackets indicate current price is over target). If ORI meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).