Both ORG & AGL Energy have enjoyed a strong rebound in their respective share prices over the past 12 months, ORG running from below $4 to ~$6.50 while AGL has advanced by a greater margin. At their March investor day, ORG announced a $250m on-market buy-back which commenced this month with more likely to follow, they also announced a strategic change to their operations which broadly speaking covered lowering their cost base, expanding products (internet via Aussie Broadband an example of this) and accelerating renewables & clean energy which combined with investments in batteries creates a big change in emissions. This is a stock turning around and on a projected P/E of 14.5x if they get it right they can experience the double whammy of higher earnings and a re-rate of the multiple the market is prepared to pay for those earnings.
MM is neutral ORG ~$6.60, preferring to buy into a pullback
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