MS narrows preference for Australia's AGL over Origin, still sees valuation edge

AGL Energy

02/10/2025 24:26

** Morgan Stanley says it favours power producer AGL Energy AGL.AX over peer Origin Energy ORG.AX, citing valuation and commodity exposure, though the gap is narrowing

** However, brokerage cuts AGL's PT to A$9.66 from A$9.68; says AGL has a 20% preference share in tech platform Kaluza, but provides no earnings disclosures on its investment

** Notes coal plant outages have had minimal impact on pool prices in FY26 to date, while retail churn rates rise

** As of last close, AGL is down 18.3% vs ORG's 14.5% gains YTD

($1 = 1.5122 Australian dollars)

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk))