Citi has increased Orica’s rating and price target.

The progression in mining activities across Australia in June has been deemed as a positive driver for Orica, prompting an upgrade to a ‘buy’ rating.

Citi believes that further mining activities within the Asia Pacific region should catalyze a near-term upswing, which will positively impact the demand for explosives.

Despite this, Citi does not anticipate a material rise in ammonia prices in the near future.

According to Refinitiv Data, of 13 analysts, nine recommend the stock as a ‘buy’ or higher, three suggest ‘hold’, and one recommends ‘sell’.

The median price target for them is A$17.40.

Orica’s shares have experienced a year-to-date increase of 3.1% as of the last closing.

Orica (ASX:ORI) is a leading provider of commercial explosives and innovative blasting systems to the mining, quarrying, oil and gas, and construction markets.