Origin Energy's presentation about Octopus Energy reconfirmed the upbeat view of the company for Morgan Stanley.

The broker details an positive outlook for Octopus' Kracken subscribers which should reach 100m by 2027 and Origin Energy's domestic Kracken license in the National Electricty Market is considered a source of compettive advantage.

Origin Energy's $1.2bn investment or 22.7% stake in Octopus Energy is worth $3bn in the current market, but concerns around the lack of  clarity on the earnings for Octopus Energy, holds the analyst back from a more upbeat bull case valuation of $4.3bn.

The Equal-weight rating and target price of $9.26. Industry view: Cautious.

Sector: Utilities.

Target price is $9.26.Current Price is $10.06. Difference: ($0.80) - (brackets indicate current price is over target). If ORG meets the Morgan Stanley target it will return approximately -9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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