Jefferies hikes PT on AGL Energy, says H1 results sufficient to offset headwinds

AGL Energy

13/02/2025 01:15

** Jefferies hikes price target on Australia's top power
producer, AGL Energy  AGL.AX  to A$13.32 from A$12.38, retains
"Buy" rating
    ** AGL shares were trading 4% lower at A$11.265 apiece,
after ending largely flat on Wednesday
    ** AGL on Wednesday reported 1H25 underlying profit of A$373
million ($234.28 million), ahead of Visible Alpha consensus
    ** It also said it was targeting 1.4 GW of grid-scale
battery storage projects in the next year
    ** Jefferies says strong cost management offset lower
generation and demand profile
    ** Says while there are headwinds in 2H25,
stronger-than-expected result provides a sufficient offset
    ** Brokerage lifts FY25 NPAT guidance to A$674 million, a
4.6% hike
    ** Six of 10 analysts rate AGL "Buy" or higher, three "Hold"
and one "Sell"; their median PT is A$12.29 – LSEG data
    ** AGL largely flat this year, including the day's move


($1 = 1.5921 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com;))