In key news on Australian stocks, AGL Energy Limited (AU:AGL) shares gained 7.4% on Tuesday after the company upgraded its earnings outlook for Fiscal 2024. The main reason driving the upgrade was the solid summer demand for power in New South Wales and Queensland, where AGL remains a key supplier of electricity. Following the upgrade, AGL Energy shares experienced their most significant jump in over five months, emerging as one of the top gainers on the ASX 200 index.
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AGL Energy is an Australian energy company catering to over 4 million customers with electricity and gas services. The company is a leading developer of renewable energy in Australia and owns a diverse portfolio of hydro, wind, biomass, etc.
AGL’s Earnings Upgrade
AGL now anticipates an annual underlying NPAT (net profit after tax) in the range of AU$760 million to AU$810 million for FY24, up from the previous outlook range of $680 million to $780 million. The upgrade represents a substantial increase of 170%-188% over the AU$281 million of underlying NPAT recorded in the previous fiscal year.
The company also raised its projection for underlying EBITDA to a range of AU$2.12 billion to AU$2.20 billion, up from the previous guidance range of AU$2.025 billion to AU$2.175 billion. AGL reported underlying EBITDA of AU$1.36 billion in FY23.
Additionally, AGL highlighted the sustained robust operational and financial performance of the business following the half-year results in February 2024. Its improvement is credited to enhanced plant availability, flexibility, and generation, as well as solid consumer demand.
Is AGL a Good Stock to Buy?
According to TipRanks’ consensus forecast, AGL stock has a Strong Buy rating based on four Buys versus one Hold recommendation. The AGL Energy share price target is AU$12.58, which is 26% above the current level.
