AGL Energy shares soar 14%: Is there any upside left?

The electricity and gas supplier has come off the boil today.

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AGL Energy Ltd (ASX: AGL) shares are trading in the red on Tuesday afternoon. At the time of writing, they are down 2.28% to $10.08 a piece.

AGL shares look to have taken a turn today after two weeks of solid gains. Despite cooling off this week, the share price is still 13.9% higher than before its most recent results announcement.

A woman wearing a hard hat holds two sparking wires together as energy surges between them.

Image source: Getty Images

What did investors like about AGL Energy's post results?

On the 11th of February, AGL reported flat underlying EBITDA and a 6% decline in underlying net profit after tax. 

Investors were most excited by the company's revised FY26 guidance figures which revealed it now expects full-year underlying EBITDA of $2.02 billion to $2.18 billion. Previously, the range was $1.92 billion to $2.22 billion.

Its underlying net profit guidance was also tightened to $580 million to $680 million, from a much wider range of $500 million to $700 million.

Despite its profit decline during the first half, the AGL board elected to increase its interim dividend. The company declared a fully franked interim dividend of 24 cents per share, which is up 4.3% from 23 cents per share a year earlier, to be paid on the 26th of March 2026.

Clearly investors were thrilled, but now the question is, what's next?

Analysts confirmed their ratings on AGL shares

Following the company's results announcement, Citi confirmed its buy rating on the ASX All Ords utilities share with a price target of $11.80. 

RBC Capital also has a buy recommendation with a target of $11.50.

The team at UBS also rates the energy retailer and generator as a buy, with a price target of $11.00. The broker said it thinks AGL is in a strong position to grow its underlying EBITDA year-over-year to 2030 so long as generation availability is maintained. It also said that its recent results show that AGL's battery portfolio is performing ahead of expectations.

Plenty of upside left for AGL Energy shares

The brokers above aren't the only ones bullish on the energy company's stock. TradingView data shows that out of 10 analysts, nine have a buy or strong buy rating on AGL Energy shares.

The average target price of $11.50, which is in line with RBC Capital's expectations, implies a 14.28% upside from the share price at the time of writing.

But some expect the share price could jump even higher to $13.25 a piece. That implies a huge 31.75% potential upside ahead for AGL investors. 

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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