The buy low, sell high adage may not ring true for integrated energy company Origin Energy Ltd (ASX: ORG) according to UBS, who has placed a buy rating on the stock despite its share price hovering in 52-week high territory.
Origin shares closed at $9.64 on May 1, up 34% from its $7.17 share price this time last year after a steady track upwards over the last 12 months to hit a 52-week high on April 30 at $9.75.
The UBS broker says Origin's March quarter report illustrated the company's only producing asset is poised to begin increased cash distributions back to Origin due to rising oil prices and cost controls.
UBS think Origin needs to focus on debt-reduction by FY19 and has raised its price target on the share from $10.15 to $10.70.
Other players in the energy sphere are following suit on Origin's healthy share price gains with oil and gas explorer Beach Energy Ltd (ASX: BPT) also on the 52-week high list, alongside energy investor Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).
