Following the 13.4% fall in Orica shares last Friday, three brokers have downgraded the stock due to the profit downgrade and worries about the impact of the resources slowdown on Orica's explosives business. Macquarie, UBS and Credit Suisse have lowered their recommendation on the company from Outperform to Neutral, highlighting particular risks with its explosives business. They emphasize a predicted weakening and possible structural issues with the explosives market across Asia Pacific, reducing their forecasts for the division for the next three years. Furthermore, they note that implied earnings for the second half of 2013 are down 20% based on the revised profit guidance.
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