Thoughts on AGL & TER please.
Hi Guys, Two questions from me: 1. Can you elaborate on MM’s neutral view on AGL, post their reasonable reporting? 2. What are your thoughts on Terracom (TER)? Thanks!
The Latest Q&A
Answer
Hi Brett,
AGL $8.56 – We liked AGL’s 1H result which was accompanied by a tightening to FY guidance that was essentially above consensus, hence was taken as an upgrade. Clearly this was a good result and the share price popped ~10% on the day. The lingering issue we see, and the reason why we are not outright bullish is the potential softening of energy markets in FY25. The company themselves highlighted this but said it was too early to take a view, noting that this softness was the reason for the Macquarie downgrade pre-results that we discussed here.
These question marks along with the pop in the share price makes us ‘neutral’ here, not outright bullish. We don’t have any intentions of selling our position at this stage and we may look to increase it back around $8.20-30 – we hold the stock in our Active Income Portfolio.
TER 26.5c – we are not close to this $212mn coal mining services company but its shares have fallen steadily from $1.20 to sub 30c over the last 16-months putting it firmly in the too hard basket.
