Macquarie expects Origin Energy will continue to benefit from the strong oil price and combination of contract and spot sales as the power price rally endures.
But the broker says a material flow-through to earnings is delayed to FY24.
Macquarie says the company’s solid cash flow suggests it is well-placed for buybacks and storage investments.
EPS forecasts rise 5.8% in FY22; 21% in FY23; and 31% in FY24.
Outperform rating retained. Target price increases to $5.590 from $5.69.
Sector: Energy.
Target price is $5.90.Current Price is $5.78. Difference: $0.12 – (brackets indicate current price is over target). If ORG meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
