Origin shares gain as Macquarie upgrades stock to 'outperform'
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The news: Shares in Origin Energy gained on the ASX after Macquarie upgraded its rating on Australia’s top energy retailer and gas producer.
The numbers: Origin shares rose 2.9% to $9.83 by 12:50pm AEST, having added over 15% since January.
Macquarie upgraded its rating on Origin from 'neutral' to 'outperform' and lifted its target price from $10.12 to $10.43.
The context: Macquarie analysts expect Origin to benefit from higher electricity prices, and a lower cost of coal, by the 2026 financial year.
Meanwhile, the analysts said that retail churn, whilst high, is lower than the prior corresponding period, possibly due to government rebates and more moderate electricity price rises.
They also believe that Origin's 23% owned renewable energy company Octopus Energy has secured a new customer, though not formally announced, adding 8 million accounts and representing 15% growth.
What they said: "Coal price weakness should enable better FY26 earnings," the analysts said.
"Balance sheet has flexibility to pursue both battery (SA) and [wind farm] (NSW) opportunities with clarity during the year."
The source: Macquarie research
