AGL Energy Limited (ASX: AGL) shares have come under pressure this month.
Since the start of February, the energy giant's shares have fallen 5.5%.
All of this decline has come since the release of AGL's half year results, which fell well short of expectations.
For the six months ended 31 December, AGL reported an underlying net profit after tax of $87 million, which was a massive 55% decline on the prior corresponding period. This led to AGL slashing its dividend by half to 8 cents per share.
Well, with the bad news out of the way, investors may now be looking at AGL shares and wondering if an investment opportunity has been created by this weakness.
What if you were to invest $1,000 into its shares now? Would you get a good return on your investment in 2023?
Would you get a good return from AGL shares?
While opinion is divided on where AGL shares are heading, one leading broker sees plenty of upside ahead for investors. Particularly given that a return to form is expected in FY 2024.
According to a note out of Credit Suisse, its analysts responded to AGL's half year results by retaining their outperform rating with a trimmed price target of $8.70.
Based on the current AGL share price of $7.22, this implies a potential return of 20.5% for investors over the next 12 months.
This means that a $1,000 investment would turn into $1,205 if Credit Suisse is on the money with its recommendation.
In addition, the market is expecting a 26 cents per share dividend in FY 2023, which equates to a 3.6% dividend yield. This would add an extra $36 to your return, bringing your total potential return to a solid $1,241.
