Trading Idea – Switch out of AGL and into Origin Energy

We are recommending clients reduce their holding or take some profits on holdings in AGL Energy (ASX Code: AGL) and switching into Origin Energy (ASX Code: ORG) as a better alternative.  We see more upside potential in ORG and think AGL may be due for a pull back.

AGL has had a great run trading now above $18.00, (Current share price $18.32) compared to a price of $13.20 at the start of 2015 (an increase of 39%).  

Research house Morningstar have a fair target value on AGL of $15.00 and are expecting a pullback from the stock’s recent strength.  ORG has a price target above their share price at $5.50 expecting it to strengthen. Comparing the stocks dividends at current prices ORG is returning 6.8% unfranked and AGL is returning 3.6% fully franked.  View Full Trading Report