Australian power producer Origin Energy gains on Macquarie upgrade
** Shares of Australian power producer Origin Energy ORG.AX rise as much as 3.7% to A$9.90, marking their biggest intraday pct gain since Feb. 15
** ORG trading around 2% higher as of 0440 GMT
** Macquarie upgrades rating to "outperform" from "neutral", hikes price target to A$10.43 from A$10.12
** Brokerage says forward electricity prices likely to be higher in FY26 even as coal costs are seen dropping to FY24 levels
** Says market pricing indicates coal costs could return to A$125 per tonne, resulting in A$140 mln ($94.71 mln)-A$150 mln of additional income
** It is plausible to expect ORG to increase generation as coal price falls - Macquarie
** Lower retail churn, moderate rise in electricity prices, and addition of customers beneficial to ORG - Macquarie
** Seven of 11 analysts rate ORG "buy" or higher, three "hold" and one "sell"; their median PT is A$10.47 – LSEG data
** ORG stock up 16% this year, including Wednesday's moves, outperforming a 7% gain in the ASX 200 benchmark index .AXJO
($1 = 1.4782 Australian dollars)
Reporting by Sameer Manekar in Bengaluru
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
