Rudi's View | 3:14 PM
By Rudi Filapek-Vandyck, Editor
Looking forward to Australian utilities releasing financial reports this month, analysts at Morgan Stanley have re-affirmed their conviction in AGL Energy's ((AGL)) outlook, based on projections for electricity demand (data centres included) and what is still seen as an "undemanding valuation".
Stock Analysis shows Morgan Stanley's $12.88 price target for the shares is currently a positive outlier.
In case anyone wonders: the same analysts do not like Origin Energy ((ORG)), not at all.
Stock Analysis shows when it comes to Origin Energy, Morgan Stanley is the negative outlier with a price target of $9.06 only.
A similar sector preview for infrastructure by Citi has seen this broker expressing upside risk potential for Auckland International Airport ((AIA)) --Citi's most preferred exposure-- and for Atlas Arteria ((ALX)).
Citi analysts are currently not so keen on Transurban ((TCL)), which has been downgraded to Neutral.
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Pending RBA rate cuts will put A-REITs back on investors' mind, sector analysts at Citi believe.
Fresh buyers will be looking for 'growth' with Citi highlighting Goodman Group ((GMG)), National Storage ((NSR)), Ingenia Communities Group ((INA)), Scentre Group ((SCG)), and Stockland ((SGP)).
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Investors looking for uranium exposure should consider Paladin Energy ((PDN)), Boss Energy ((BOE)) and/or Deep Yellow ((DYL)) on the ASX, suggest analysts at Canaccord Genuity.
While 2024 has been a disappointing experience for the sector, Canaccord argues contracting levels will not remain below replacement rates forever and pricing will improve in the years ahead.
Colleagues at Petra Capital have a different approach; they believe smaller companies that are advancing their mining projects, with near-term catalysts, offer the greatest upside potential in 2025.
As such, Petra Capital's two favourites are currently NexGen Energy ((NXG)) and Aura Energy ((AEE)).
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