0058 GMT - Orica may be preparing for a higher dividend payout, a share buyback, or both, according to Macquarie analysts. The explosives and chemicals company has had a good start to FY 2025, according to its December AGM remarks, and is likely on track to meet annual consensus expectations, the analysts say in a note. Orica, which is holding an investor day March 12, previous signaled in November that it would review its capital allocation framework and a potential buyback. Macquarie analysts see room for an increased dividend payout range, currently set at 40%-70% of underlying earnings. "We see related buyback potential," the analysts add. Macquarie maintains an outperform rating and a target price of A$20.78 on Orica's stock, which is down 0.2% at A$16.52. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
March 04, 2025 19:58 ET (00:58 GMT)
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