While Dyno Nobel's 1H underlying explosives performance appears solid to Morgan Stanley, the market will likely wait for a full fertiliser separation.

First half earnings (EBIT) of $174m beat forecasts by the broker and consensus by 13% and 8%, respectively.

Proceeds of $375m for Fertiliser Distribution appears underwhelming to the analysts.

Phosphate Hill FY25 production guidance of 740-800kt is unchanged.

Management noted the negative impact from US tariffs will be "minor with mitigation".

Target price: $2.90. Equal-weight. Industry view: In-Line.

Sector: Materials.

Target price is $2.90.Current Price is $2.62. Difference: $0.28 - (brackets indicate current price is over target). If DNL meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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