1059 [Dow Jones] STOCK CALL: AGL Energy (AGK.AU) downgraded to Neutral from Overweight by JPMorgan, due to 29% total shareholder return since May 1 vs 6.6% decline in S&P/ASX 200 accumulation index. Analyst says a lower-than-expected sale price of around A$700 million for its stake in the PNG pipeline is most likely, below expectations of A$800 million-to-A$1.1 billion, due to small size of its stake and less optimistic oil price assumptions by any acquirer. Maintains price target of A$15.25 vs last down 6.5% at A$14.54. (WEL)
1117 [Dow Jones] STOCK CALL: AGL Energy (AGK.AU) downgraded to Sell from Hold by Goldman Sachs JBWere with 12-month target price of A$15.15 vs AGK last down 7.5% at A$14.39. Analyst makes no changes to earnings forecasts but says with RBA moving to an easing bias and risks around inflation diminishing that it expects support for defensive stocks to decline, while expected higher wholesale electricity and gas costs will also place downward pressure on AGK's retail margins. (WEL)
AGK Price at posting:
$13.69 Sentiment: None Disclosure: Not Held