ORA - Deutsche Bank rates the stock as Hold
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The company is a beneficiary of the recent decline in the China old corrugated containers (OCC) import price, as this is the primary input for the B9 containerboard mill.
The price is now down -US$14/t year-on-year and the broker estimates the earnings impact will be neutral in FY18 after the company incurred higher OCC costs in the September quarter.
Hold rating retained. Earnings estimates are raised by 4% for FY18 and 1% for FY19. Target is raised to $3.00 from $2.90.
Target price is $3.00.Current Price is $3.22. Difference: ($0.22) - (brackets indicate current price is over target). If ORA meets the Deutsche Bank target it will return approximately -7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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