After an incident at the Liddell power station, AGL Energy has downgraded its FY21 net profit guidance to $500-$580m from $560-$660m. The downgrade is a mix of the financial impact of the Liddell incident (estimated at $25m) along with soft demand and continued weakness in electricity prices.
Citi expects AGL’s guidance to narrow at the half-year result in February and expects net profit to be $504m for FY21.
Target is reduced to $12.16 from $14.49. Neutral retained.
Sector: Utilities.
Target price is $12.16.Current Price is $12.54. Difference: ($0.38) – (brackets indicate current price is over target). If AGL meets the Citi target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
