Origin Energy’s March-quarter share of revenue outpaced Credit Suisse’s forecasts by $100m thanks to higher LNG prices; but retail volumes weakened -10% in Energy Markets.
The broker raises FY22 earnings (EBITDA forecasts 9% and FY23 forecasts 14% to reflect LNG spot prices and volumes but expects Energy Markets will likely miss guidance given fixed-price contracts amid rising coal and electricity priced.
Target price rises to $6.30 from $6.20. Neutral rating retained.
Sector: Utilities.
Target price is $6.30.Current Price is $6.84. Difference: ($0.54) – (brackets indicate current price is over target). If ORG meets the Credit Suisse target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
