How did the AGL share price perform against the ASX 200 in October?

The AGL Energy Limited (ASX: AGL) share price was up and down in October, but finished the month slightly in the red.

The AGL share price descended 0.44% from $6.84 at market close on 30 September to $6.81 on 31 October. For perspective, the S&P/ASX 200 Index (ASX: XJO) lifted 6% in this timeframe. Since 31 October, AGL shares have risen nearly 4%.

Let’s take a look at how the ASX energy share fared in October.

What happened?

AGL shares leapt 7% between market close on 30 September and 6 October.

A broker note out of Credit Suisse may have provided a boost to the AGL share price in early October. Analysts upgraded the company’s share price to outperform with an $8.20 price target. Credit Suisse believes AGL’s cash flow will stay strong amid the company’s plan to exit coal in 2035.

Meanwhile, four of AGL’s directors snapped up a total of 71,500 shares in early October at between $6.60 and $6.89 apiece. This may have been seen as a sign of confidence in the company.

However, AGL shares fell 11.61% between market close on 6 October and 21 October. News of a potential showdown at the company’s AGM appeared to impact the AGL share price on 7 October. The AGM board recommended shareholders vote against three of four candidates nominated by Galipea Partnership.

Meanwhile, AGL also updated investors on its decarbonisation plans. AGL said there had been “sustained political and social momentum for faster decarbonisation” around the world in the last 12 months. The company said decarbonisation presents a “meaningful growth opportunity for the company”.

AGL is planning to close the Loy Yang A power station by the end of FY35, a decade earlier than planned. The company also aims to close the Liddell power station in April 2023 and Bayswater power station between 2030 and 2033.

AGL plans to have 5GW of new renewables by 2030.

Morgans has recently placed a buy recommendation on AGL shares with an $8.81 price target. This implies an upside of 24% on the current share price of $7.11

In comments on The Bull in late October, investment advisor Jabin Hallihan said:

The company is exiting coal-fired generation by 2035, accelerating the closure of the Loy Yang A power station by 10 years. It’s also delivering positive near term earnings.

AGL will hold its annual general meeting on 15 November.

AGL share price snapshot

The AGL share price has soared 28% in the past year, while it has risen 15% in the year to date.

For perspective, the ASX 200 has lost about 7% in the past year.

AGL has a market capitalisation of about $4.8 billion based on the current share price.

The post How did the AGL share price perform against the ASX 200 in October? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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.

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