The forecasts for Orica (ASX:ORI) adjusted earnings per share (EPS) fell by 3% per annum for the period between fiscal 2026 and fiscal 2027, reflecting higher-than-expected foreign exchange impacts, Jefferies said in a note on Wednesday.
Orica said its earnings before interest and taxes (EBIT) is expected to be slightly higher in the first half of the year than in the prior corresponding period. It expects its cost savings program to deliver at least AU$100 million of annualized cost savings, realized across the next three years.
Jefferies said it cut EBIT 3% across fiscal 2026 to fiscal 2028 for the firm, reflecting a moderation in specialty chemicals and digital solutions growth forecasts, due mainly to higher foreign exchange impacts.
The investment firm maintained its buy rating on Orica and lowered the price target to AU$25.73 per share from AU$28.50 per share.