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AGL Energy (AGL) and APA Group (APA)

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Question asked 30/08/2025

AGL Energy (AGL) and APA Group (APA)

Very much enjoyed and got value from Thursday's Morning report! While you would not swap APA for AGL, can you also please clarify if you would sell AGL for APA, or do you think the relative recovery potential for AGL (for existing holdings) is better than additional growth potential from APA?

Answer

Hi Tony,

Probably easier if we split the two stocks here but to reiterate, we prefer APA over AGL following their recent reports. We have half an eye on optimum defensive plays for some time in the next 6-12 months when MM may wish to move down the risk curve.

We prefer APA over AGL into Christmas with its ~6.6% part franked on track to grow in the years ahead. Conversely, AGL just cut its dividend compared to 2024, not the ideal profile of a stock looking to be considered for its defensive nature.
We prefer more traditional defensives like Telstra &/or a supermarket compared to AGL.
We have no interest buying/adding to our AGL holding for a recovery, we are more likely sellers.

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APA Group (APA) v AGL Energy (AGL)

LAST UPDATED 28/08/2025 08:52

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