Citi upbeat on Australia's Origin Energy, flags potential undervaluation

Hellenic Telecommunications Organization SA

15/08/2024 21:35

** Analysts at Citi say wholesale volatility positively
affects Australia-based Origin Energy's  ORG.AX  retail margins
due to regulated tariffs, with the power producer's energy costs
rising more slowly than the industry average
    ** Considering management's confidence in outperforming
gross profit forecasts and the potential for recovery in certain
costs, market may be undervaluing ORG's potential - Citi
    ** ORG, on Thursday, flagged weaker-than-expected forecasts
for its main Energy Markets unit and higher coal costs, which
led to an 11.5% drop in shares 
    ** Citi trims ORG's PT by 50 Australian cents to A$11;
retains "buy" rating for ORG stock 
    ** "Compliance costs may have some partial recovery, though
since some of this cost is ORG specific, we don't think all of
it will be recoverable" - Citi
    ** ORG up 13.3% this year, as of last close 

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))