FY19 net profit was ahead of expectations. Macquarie liked the positive growth outlook, particularly in the context of a challenging earnings backdrop in the broader market.
The company is delivering reasonable growth and this is being rewarded, the broker notes, notwithstanding a relatively full valuation.
The start-up of Burrup will be the main driver of growth going forward. Neutral rating maintained. Target is raised to $23.05 from $20.85.
Sector: Materials.
Target price is $23.05.Current Price is $23.73. Difference: ($0.68) – (brackets indicate current price is over target). If ORI meets the Macquarie target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
