AGL Energy Bear Unmoved by Slight Improvement in Power Markets
Dow Jones
Yesterday
2219 GMT - AGL Energy retains its bear at Macquarie despite power markets appearing to show some spark over the past two weeks. Macquarie notes AGL and Origin Energy have both increased their long positions in New South Wales state. This implies less forward selling. The rally in spot coal prices, without a corresponding response in electricity prices, reduces the incentive to generate, Macquarie says. It keeps an underperform call on AGL's stock. "Better power prices may slow the downgrade cycle, but subdued volatility and declining earnings still drive downside risk," Macquarie says. AGL ended last week at A$8.43.
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