AGL Energy recorded a solid FY17 NPAT.
However, the market has reacted negatively to the board de-prioritised capital management. This has happened less than 12 months after launching its buy-back program.
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AGL provided FY18 Underlying NPAT guidance in the range of $940-$1,040m. Earnings growth forecast is driven predominantly by higher wholesale electricity prices.
FY18 EPS increases from $1.20 in FY17 to $1.40, placing AGL on a forward yield of 4.6%
We have previously expressed our concerns with regards to AGL being overvalued and we continue to maintain our $22 price target.
AGL
