1212 [Dow Jones] STOCK CALL: Credit Suisse boosts Orica (ORI.AU) target to A$21.00 from A$20.00, "reflecting higher comparable asset valuation less modest downgrades." Expects ORI Monday to deliver a record 1H net profit of A$250 million. However, ORI trading at 9.8 times PE, or 13%-20% below its 1-3 year trading average. "We sense the resilience of its mining explosives model is being underestimated," CS says in a client note. "While its structure may be considered cumbersome and communication historically clumsy, the share price seemingly assumes the worst case scenario." Cuts FY09 forecast by 3.7% to A$624.8 million and by 1.6% on average throughout FY09-FY11. Keeps Outperform. Last trade up 1.4% to A$17.04. (ABH)
1220 [Dow Jones] Goldman Sachs JBWere tips Orica (ORI.AU) Monday will post 1H net profit, before one-off items, of A$261.1 million, up 9.8% from a year ago, and record A$30 million in significant items for Excel restructure and for suspension of consumer product units spinoff. Expects mining services unit to show improved earnings but cautious on outlook. Keeps Buy, A$22.52 target. Last trade up 1.0% to A$16.97. (ABH)
ORI Price at posting:
$16.26 Sentiment: Hold Disclosure: Held
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