Morgans allows for a greater financial impact now that AGL Energy has extended the expected duration of the Loy Yang A unit 2 outage out to mid-September from August 1. Some impact from the short duration outages in FY22 is also incorporated into forecasts.
The target price slips to $9.92 from $10.08 though the broker still sees potential for strong earnings growth given strong tailwinds as higher prices flow through customer contracts. The Add rating is maintained.
Sector: Utilities.
Target price is $9.92.Current Price is $8.74. Difference: $1.18 – (brackets indicate current price is over target). If AGL meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
