Revisiting AGL
Dear James, how do you see AGL in the near future/ short term? Jack
The Latest Q&A
Answer
Hi Jack,
Unfortunately, the energy market has seen a lot of uncertainty over the past year forcing AGL to cut earnings forecasts. The question now being whether or not the market has become too bearish pushing AGL to it’s lowest point since the GFC? On a forward P/E of just 11x revised earnings, and a forecasted dividend yield of 7%, there is a lot now built into the share price.
At their recent results they reconfirmed FY21 guidance and market expectations are at the lower end of the 500-580m profit guidance range.
We are neutral AGL here, we like the yield but it seems all too hard for the next 6 months at least.
