Credit Suisse pulls forward -$50m in wholesale price decreases. The target is reduced to $6.70 from $6.80 and an Underperform rating is maintained, with the broker anticipating further downgrades to consensus FY22 and FY23 earnings forecasts.
The broker also notes the proposed structural separation will leave Accel with tremendous leverage to wholesale electricity prices.
Sector: Utilities.
Target price is $6.70.Current Price is $8.15. Difference: ($1.45) – (brackets indicate current price is over target). If AGL meets the Credit Suisse target it will return approximately -22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
