The AGL Energy Limited (ASX: AGL) share price is edging higher in afternoon trade on Friday.
At the time of writing, investors have bid the share nearly 1% into the green despite no market-sensitive news.
In broad market moves, the S&P/ASX 200 Utilities Index (ASX: XUJ) is trading more than 2% higher on the day. Returns for both for the past 12 months are seen below.
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What's up with the AGL share price?
Whilst it's been quiet in AGL's camp, elsewhere it's been more of a ruckus. US Natural Gas futures have rebounded towards yearly highs and now trade 51% higher on the month.
Moreover, the outlook for energy markets continues to strengthen for suppliers, a positive inflection point for the AGL share price.
This sentiment was echoed by analysts at JP Morgan who are bullish on the AGL share price.
In a recent note, the broker upgraded its average wholesale electricity prices by 93% to $208 megawatt per hour.
It expects these trends to continue into FY23 and FY24 with similar upgrades to forecasts in those years as well.
As a result, the broker anticipates AGL to print net profit of around $240 million in FY22, expanding to $555 million in FY23 and $1.32 billion in FY24.
Meanwhile, AGL is rated as a buy from 44% of the brokers covering the share, with the remainder tilted towards a hold, per Refinitiv Eikon data. There is just 1 sell rating.
The consensus price target from this list is $9.06 per share. Meanwhile, AGL has secured a 36% gain this year to date.
