The AGL Energy Limited (ASX: AGL) share price gained 1.95% in Friday trade, outperforming the S&P/ASX 200 Index (ASX: XJO) which trailed in 0.87% lower at the close.
Shares in the energy and telco giant closed at $6.80 apiece. Earlier in Friday’s session, they fetched a high of $6.92 and a low of $6.66.
The utilities sector was the strongest performer for the day, and the S&P/ASX 200 Utilities Index (ASX: XUJ) finished with a gain of 1.27%.
It might not be surprising to hear then that two of AGL’s peer companies also finished in the green on Friday.
Meridian Energy Ltd (ASX: MEZ) gained a healthy 6.33% and Infratil Ltd (ASX: IFT) ended the day 2.15% higher.
What might be surprising is that there was no news today to spearhead AGL’s price movement. But what we can do is recap some of the company’s recent events to figure out what led to it.
What’s going on with the AGL Energy share price?
AGL received positive coverage from Morgans Investment advisor Jabin Hallihan on 25 October. The broker gave the company a buy recommendation and a price target of $8.81. This suggests a possible 29.5% upside at the time of writing.
More positive sentiment came from AGL board hopeful John Pollaears who described the company as having a “huge, huge upside for shareholders” provided that its transformation plan goes through.
A broker echoed this sentiment at Credit Suisse which gave AGL shares a price target of $8.20.
AGL said it would stop using coal entirely in its strategic review update posted on 29 September. For the company to stop burning coal it will cost around $20 billion and see its emissions drop from 40 million tonnes to net zero.
AGL Energy share price snapshot
The AGL share price is up 10.75% year to date. Meanwhile, the ASX 200 is down 8.84% over the same period.
The company’s market capitalisation is around $4.57 billion.
The post Why did the AGL share price outperform the ASX 200 on Friday? appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
See The 5 Stocks
*Returns as of September 1 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Here were the 3 most heavily traded ASX 200 shares on Friday
- Here are the top 10 ASX 200 shares today
- Why AGL, Mirvac, PeopleIn, and SkyCity shares are charging higher
- Why did this ASX All Ordinaries share crash 18% today?
- 3 ASX 200 dividend shares you may have overlooked: Wilsons
Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/cEIemBQ
Leave a Reply