FY19 underlying net profit was slightly ahead of Credit Suisse estimates but FY20 guidance for $780-860m disappointed.
Higher depreciation explains most of the difference in guidance versus forecasts, which Credit Suisse calculates implies an operating earnings (EBITDA) downgrade of -1.5%.
The broker maintains a Neutral rating and decreases the target to $18.40 from $19.20.
Target price is $18.40.Current Price is $19.08. Difference: ($0.68) – (brackets indicate current price is over target). If AGL meets the Credit Suisse target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).