Australian Gas Light Company (AGL) Shares Recommendation

UBS has upgraded their recommendation for the Australian Gas Light Company (AGL) stock to Buy 2 from Neutral 1 with a share price target of $20.30. UBS notes that "AGL is substantially changing its business model. It is changing the business mix and the growth and risk profiles. Given the company's scale in the Australian customer market in particular, we believe this has the potential to be a value-adding strategy. The key element for investors will likely be execution risk and the valuation. We forecast 30% EPS growth between 2007 and 2009."

Meanwhile, Merill Lynch has rated the Australian Gas Light Company (AGL) stock as Neutral, Low risk - while decreasing their DCF valuation from $19 to $18.50 from recent cost increases on the PNG pipeline.

Australian Gas Light Company Limited is listed on the Australian Stock Exchange (ASX) under stock code AGL. The company is involved in the sale of gas and electricity; the operation of natural gas and electricity distributuion systems and natural gas transmission pipelines; the extraction and sale of LPG; investments in gas industries (including overseas); and the realisation of property. You can view their investor website here. Check your charts!