UBS lifts spot price forecasts for LNG and now expects Asian prices will remain around US$14/MMBtu throughout the second half. As a result earnings growth is anticipated for Origin Energy from higher APLNG distributions and its own supply book.
Estimates for earnings per share are lifted in FY23-24 by 3-10%. FY22 estimates are cut by -6% as higher spot LNG prices are offset by hedging losses. Buy rating unchanged. Target is raised to $5.10 from $4.80.
Sector: Energy.
Target price is $5.10.Current Price is $4.58. Difference: $0.52 – (brackets indicate current price is over target). If ORG meets the UBS target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
