We have been reconsidering our AGL position in the MM growth portfolio only since Barrenjoey downgraded the stock a few weeks ago, and the lack of “bounce” has us considering a switch on a more muted growth outlook. We are considering moving into James Hardie (JHX) or, like for like in the sector, into APA – not a growth stock per se’ but we believe it offers more upside and a better yield from current levels.
NB Barrenjoey did a deep dive into AGL’s contract book in a good piece of research, flagging AGL’s future earnings headwind from FY27 as two supply contracts roll off: the QGC gas supply contract expiring in December 2027 and the Wilpinjong coal supply contract expiring in December 2028.
- We have been considering switches for AGL, some like for like, and some not. MM owns AGL in our Active Growth Portfolio & the Active Income Portfolio.
MM is cautiously bullish on AGL
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