Orica (ASX:ORI), a well-regarded explosives maker, is advantageously set to seize decarbonisation-related commercial opportunities, claim analysts at Jefferies.

Orica’s stock has been recommended as a ‘buy’ by Jefferies, with a maintained price target (PT) of A$18.80, indicating an 18% upside on the last close.

Jefferies expects Orica to primarily benefit from the global explosives market’s favorable outlook.

However, analysts also caution that the shutdown of the KI ammonia plant may result in the company being short of about 70 kilotons of ammonia, entailing a loss of around A$30 million.

Despite this, the strong consumer demand and increased earnings from blasting and digital technology offerings are expected to remain profit drivers for the company in the second half of 2023 and the financial year of 2024, according to Macquarie.

While maintaining its ‘outperform’ rating, Macquarie has nonetheless reduced its price target from A$18.0 to A$17.8 based on the fiscal year 2024 standard operating procedure.

The company’s earnings before interest and taxes estimates have been lowered due to the impact of the KI plant shutdown.

Coincidentally, the analysts' average rating also equates to ‘buy’, with their median price target standing at A$18.

Regardless, Orica’s shares are currently down by 2.3% in inconsistent trading.

The stock is up by 5.4% year to date, as per its last close.

Orica is a globally recognized explosives manufacturer.