BUZZ-STREET VIEW-Citi lifts earnings forecast on Australia's Origin Energy after strong first-half profit

Australian power producer Origin Energy ORG.AX trading 1.7% higher at A$10.31

ORG on Thursday reported 1H25 underlying profit ahead of expectations and committed A$1.7 billion ($1.07 billion) to major battery projects

Underlying profit for 1H25 up 24% from a year ago to A$924 million, ahead of consensus of A$888.3 million

ORG announces interim dividend of 30 Australian cents per share

ORG shares ended 1.2% lower on Thursday

SOLID RESULTS, CITI BULLISH ON FLEXIBLE PORTFOLIO

Citi retains "buy" rating and PT of A$11.50

Says Origin's fleet of generation assets would reap gains from market volatility and provide a cheaper hedge for its retail business than external hedges

Lifts 2H25 and FY26 dividend forecasts; hikes FY25 underlying net profit after tax forecast by 31%

Morningstar says ORG remains in "sound financial health"

Brokerage flags headwinds from LNG trading gains tapering off and a drop in LNG prices beyond 2025

Morgan Stanley says it retains "underweight" rating in view of valuation, rising debt

Four of 11 analysts rate ORG "buy" or higher, five "hold" and two "sell" or lower; their median PT is A$10.73, according to data compiled by LSEG

($1 = 1.5835 Australian dollars)