ASX utilities shares were one of the poorer-performing sectors in FY25.
The S&P/ASX 200 Utilities Index (ASX: XUJ) rose just 1.55% in that period.
However, broker Bell Potter has identified two utilities stocks with more than 20% upside.
Let's see what the broker had to say.
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LGI Ltd (ASX: LGI)
LGI Ltd is engaged in the recovery of biogas from landfills, and the subsequent conversion into renewable electricity and saleable environmental products.
The company operates at the convergence of the waste and clean energy sectors.
It saw its share price plummet more than 5% yesterday.
However, it remains slightly in the positive YTD, rising 2.74% in that span.
Bell Potter lists the ASX utilities share as one to watch, placing a buy recommendation on LGI shares.
The broker has a price target of $3.60, which indicates 20% upside from its current share price of $3.00.
According to the broker, LGI is rapidly growing while staying focused on cutting emissions and delivering local power.
In a July report, the broker said revenue contribution is growing across multiple sources.
LGI achieves revenue in excess of $30 million from ordinary activities and is in growth phase. Landfill gas is a unique sub-sector in the renewable space, making LGI a specialist player with only a couple of direct competitors in the market.
AGL Energy Ltd (ASX: AGL)
AGL is a power company participating in the gas and electricity wholesale and retail markets.
Its share price is down more than 5% over the last year, and closed yesterday at $9.78.
Bell Potter has an overweight rating and price target of $12.00 on the utilities company.
From current levels, this indicates an upside of 22.69%.
Earlier this year, speaking on the outlook for AGL shares, the broker said customer satisfaction metrics are strong, with a strategic Net Promoter Score (NPS) of +3.
AGL's retail transformation program is delivering benefits, and their customer markets business continues to grow, largely driven by energy and telecommunications services.
Other brokers are also optimistic on AGL shares, with Macquarie placing a price target of $11.13.
Trading View has a 12-month price target of $12.05, which indicates more than 25% upside.
Online brokerage platform Selfwealth has an average price target of $11.96.
