2356 GMT - Origin Energy gets a new bull in Macquarie as coal prices back-pedal. While forward electricity prices are still likely to be higher in FY 2026, the cost of coal is headed back toward FY 2024 levels, it says. Macquarie says market pricing points to coal costs coming back to A$125/ton, which suggests A$140 million-A$150 million of extra income. "It is also plausible to expect Origin to increase generation as the coal price falls," Macquarie says. It upgrades Origin to outperform from neutral, citing a 6% yield, a price-to-earnings multiple at the lower part of its historical range, and a brighter outlook for profits. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
September 17, 2024 19:56 ET (23:56 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.