In a review of respective investment cases, Morgan Stanley prefers Origin Energy over AGL Energy ((AGL)), on de-merger implementation uncertainty for the latter and overall wholesale positioning.

The broker likes Origin Energy's Integrated Gas division's leverage to oil prices and regional LNG prices. It's estimated this partly offsets earnings headwinds in Energy Markets from falling pool prices and rising gas procurement costs.

The Equal-weight rating and $4.88 target are maintained. Industry view: Cautious.

Sector: Energy.

Target price is $4.88.Current Price is $4.55. Difference: $0.33 - (brackets indicate current price is over target). If ORG meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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