Australia's Origin Energy gains after Citi lifts PT on stronger energy markets outlook

Origin Energy

14/08/2026 02:29

Updates
** Shares of Origin Energy ORG.AX rise as much as 0.7% to A$11.940
 ** Stock on track for fourth consecutive session of gains
** ORG's stronger-than-expected energy markets result and FY27 forecast support upside to earnings beyond FY27, brokerage Citi says
** Brokerage raises ORG's target price to A$13 per share, maintains "buy" rating 
** Citi says result showed earnings were more resilient to softer forward power curves than expected, helped by growing contributions from battery storage and portfolio optimisation
** Brokerage raises co's FY27 core net profit forecast by 2%, reflecting lower net pool costs, but cut its FY28 earnings estimate by 10% due to higher expected reinvestment at Octopus Energy
** Citi also flags uncertainty around scale and pace of reinvestment in non-UK customer growth, energy services and Kraken, while the timing of a potential Kraken IPO was also unclear
** Stock up 3.7% YTD

(Reporting by Roshan Thomas & Rajasik Mukherjee in Bengaluru)
((Roshan.Thomas@thomsonreuters.com;))