Home Sports Why did the AGL share price outperform the ASX 200 on Friday?

Why did the AGL share price outperform the ASX 200 on Friday?

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The AGL Energy Limited (ASX: AGL) shares rose 1.95% in Friday trading, outperforming S&P/ASX 200 Index (ASX: XJO) , which closed down 0.87%.

Shares of the energy and telecommunications giant closed at $6.80 apiece. They hit a high of $6.92 and a low of $6.66 earlier in the session on Friday.

The utilities sector was the strongest performer of the day, and S&P/ASX 200 Utilities Index (ASX: XUJ) finished up 1.27%.

It may come as no surprise to hear that two of AGL’s peers also finished in the black on Friday.

Meridian Energy Ltd (ASX: MEZ) scored a healthy 6.33% and Infratil Ltd (ASX: IFT) ended the day 2.15% higher.

What may be surprising is that there was no news to lead AGL’s price action today. But what we can do is recap some of the company’s recent events to figure out what led up to this.

What is happening to AGL Energy’s share price?

AGL received positive lighting by Morgans investment adviser Jabin Hallihan on 25 October. The brokerage has given the company a buy rating and a $8.81 target price. This suggests a potential upside of 29.5% at the time of writing.

A more positive sentiment came from AGL board candidate John Pollaers who described the company as with “huge, huge upside for shareholders” provided his transformation plan is executed.

Broker echoed this sentiment at Credit Suisse, giving AGL a $8.20 price target.

AGL has said it will stop using coal entirely strategic review update published on September 29. For the company to stop burning coal, it would cost about $20 billion and reduce its emissions from 40 million tons to zero.

AGL Energy share price snapshot

Since the beginning of the year, AGL’s share price has increased by 10.75%. Meanwhile, the ASX 200 is down 8.84% over the same period.

Companies market capitalization is about $4.57 billion.

https://www.fool.com.au/2022/10/28/why-did-the-agl-share-price-outperform-the-asx-200-on-friday/

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