The company has reiterated guidance at its investor briefing while Macquarie notes the risk is to the upside and the focus is on strategy not the financials.
AGL articulated a strategy around the customer and desire to leverage its dual fuel offer into other commodities.
The question for Macquarie is whether the potential revenue and earnings is sufficient to offset the current profitability from baseload.
Underperform rating maintained. Target is $18.84.
Sector: Utilities.
Target price is $18.84.Current Price is $19.51. Difference: ($0.67) – (brackets indicate current price is over target). If AGL meets the Macquarie target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
