Treasure Chest | 11:10 AM
FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts. Today's idea is AGL Energy.
By Danielle Ecuyer
FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts.
Whose Idea Is It?
Macquarie
The subject:
AGL Energy's ((AGL)) earnings are expected to remain subdued due to persistently low wholesale electricity prices, according to both Macquarie and Morgan Stanley.
Analyst views diverge around the scope for AGL's batteries to become an earnings driver and an offset against lower wholesale electricity prices, due to excess renewable supply weighing on the market, despite the prospect of higher demand from an El Nino and data centres.
Macquarie argues consensus earnings forecasts for FY28 remain too high, given wholesale pricing for FY28 is already 57% through hedging and power prices remain soft.
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