AGL Energy (AGK) Share Trading Recommendation

AGL Energy (AGK) have a Neutral 2 share trading recommendation and a price target of $15.90 from share analyst UBS. AGL Energy have increased its gas fired generation portfolio via the acquisition of an old, but valuable, plant in South Australia (Torrens Island). The analyst see the transaction as EPS accretive and strategically useful. Extra peak load capacity could offset some of the worry over Southern Hydro's performance during the drought. AGK was a likely major customer of TIPS and thus in a strong position to buy the business. AGK's customers are the foundation of its value. This transaction is the latest in a string of deals that are helping to maximise the value of AGK's business. Even if the proposed ORG transaction falls on either the Scylla of value or more likely the Charybdis of the ACCC there likely remain further adventures for AGK shareholders. To date most of the actions seem to be adding value Their price target does not reflect anything for the ORG merger potential. About 50% of value is in the retail business with generation already accountig for 1/3 of value. Upstream is the remainder. Interest coverage remains good.

AGL Energy Limited is listed on the Australian Stock Exchange (ASX) under stock code . You can view their investor website here. AGK was listed on the ASX on 12 October, 2006. Mark Johnson is the Chairman for AGL Energy and Paul Anthony the Managing Director. 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. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade . Check your charts and good luck with your share trading!