Shares of AGL Energy Limited Declines Despite Bullish Call from Citi

AUSTRALIA STOCK EXCHANGE – Shares of AGL Energy Limited (ASX:AGL) declined 2.32 percent on Friday’s trading session at the Australian Stock Exchange despite Citi’s announcement that it remains bullish on the company’s profits.

On Friday, AGL Energy Limited (ASX:AGL)’s stock dropped to AUD16.00 a share, or AUD0.38 lower than its previous close.

AGL Energy Limited operates Australia’s largest retail energy and dual fuel customer base and consist of a substantial portfolio of wholesale energy contracts and assets to support its retail customer base.

A total of 1.74 million AGL Energy shares exchanged hands, sending the stock to hit a day’s high of AUD16.45 but was pulled back down to AUD15.97 until it settled at AUD16.00

The news about Citi sticking with bullish call on AGL Energy’s profits did not seem to interest investors.

On October 1, the Wall Street Journal has reported that AGL Energy’s guidance for full-year earnings before items of AUD650 million – AUD720 million is comfortably in line with the concensus forecast for brokers.

However, the figures were lower than the AUD723 million that Citi had expected. Citi says it is happy to remain above the top end of guidance, arguing the energy producer and retailer is well positioned to benefit from higher wholesale electricity prices.

Citi expects a higher dividend payout ratio from fiscal 2017 and AUD1 billion share buyback across FY17 and FY18. –