Morningstar calls Australia's AGL Energy shares 'attractive' after slump

AGL Energy

14/08/2025 21:12

** Morningstar says shares of AGL Energy AGL.AX are now "attractive", trading at ~25% discount to research firm's fair value estimate of A$12

** AGL dropped more than 13% earlier this week after posting a 21% drop in annual underlying profit, which missed expectations

** Morningstar attributes fall to co's softer outlook of A$500 mln ($324.80 mln) to A$700 mln for FY25 underlying NPAT

** Investment research firm lowers its forecast by 4% to A$608 mln, near outlook midpoint

** Key headwinds include higher coal and gas costs as some cheap supply contracts end, as well as higher operating costs, depreciation, and interest costs — Morningstar

** Average rating of 10 analysts is "buy"; their median PT is A$10.96, according to data compiled by LSEG

** Stock last closed at A$9.07, with YTD losses of 19.7%

($1 = 1.5394 Australian dollars)

(Reporting by Sneha Kumar in Bengaluru)

((Sneha.kumar@thomsonreuters.com))