In the good books
AGL ENERGY (AGL) was upgraded to Accumulate from Hold by Ord Minnett
Ord Minnett completes a comprehensive review of forecasts and believes the main risk associated with an investment in AGL Energy is the possibility and size of further earnings declines. Earnings are expected to decline to around $660m by FY25. AGL has guided to an FY20 net profit of $780-860m. Beyond the current year, Ord Minnett expects wholesale electricity prices to fall further and revert to a long-run wholesale electricity price forecasts of $75 per megawatt hour beyond FY25. Rating is upgraded to Accumulate from Hold and the target raised to $24.10 from $19.10. This stock is not covered in-house by Ord Minnett. Instead, the broker white labels research by JP Morgan.