AGL Energy (AGK) Shares Recommendation

AGL Energy have an initiated coverage with a Buy/Medium Risk (1M) recommendation and a $17.10 share price target from shares analyst Citigroup Investment Research (CIR). Following the completion of the Alinta transaction, AGL Energy has emerged a reinvigorated and a more focused entity. Combined with a normalised dividend yield of 3.4% CIR’s estimated total return is 15.1%. Substantial savings from corporate restructuring - The corporate restructuring programme is now largely complete, management expects to deliver annualised savings of $55m from FY08. Growth prospects remain solid - CIR maintains their view that AGK will deliver a robust profile of earnings growth over the coming years - CIR's forecasts imply a 5-year CAGR in EPS of 17%.

AGL Energy Limited is listed on the Australian Stock Exchange (ASX) under stock code AGK. You can view their investor website here. AGK was listed on the ASX on 12 October, 2006. The Company will operate Australia's largest retail energy and dual fuel customer base and consist of a substantial portfolio of wholesale energy contracts and assets to support its retail customer base. Mark Johnson is the Chairman of AGL and Paul Anthony the Managing Director. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!