Homeowners of AGL Power Restricted (ASX: AGL) shares might be in for a superb 12 months with the S&P/ASX 200 Index (ASX: XJO) big tipped to develop in its worth and choices.

Certainly, dealer Morgans has excessive hopes for the corporate regardless of it posting apparently disappointing full-year earnings final week.

The AGL share value is at the moment buying and selling at $7.98, flat with its earlier shut. For context, the ASX 200 is lifting 0.8% on the time of writing.

So, what is likely to be in retailer for these invested within the firm’s inventory within the monetary 12 months 2023 (FY23)?

Let’s have a look.

AGL share value and dividends tipped to develop

AGL shares might be gearing as much as develop in FY23, alongside the corporate’s earnings and dividends.

Whereas the market doesn’t have any FY23 steering from the ASX 200 vitality producer and retailer, the corporate has famous it expects its earnings to be resilient this fiscal 12 months amid difficult trade and market circumstances.

It’s set to launch extra detailed steering alongside the preliminary end result of a overview of its strategic course subsequent month.

Whereas Morgans initially held larger expectations for the corporate in FY23, it’s nonetheless holding out hope for a win.

Analyst Max Vickerson conceded the dealer remains to be bullish on the inventory, slapping an add ranking on valuation upside, regardless of commenting:

We considerably decrease our expectations for FY23 underlying revenue (-37%) given the probability of one other 12 months of wholesale electrical energy efficiency. We had hoped for a better diploma of optionality in its electrical energy derivatives and sooner roll over of older hedging and buyer pricing. Given the language used to sofa the outlook we suspect this isn’t the case.

Moreover, as my Idiot colleague James studies, Morgans has an $8.73 value goal on AGL shares, suggesting a possible 9.4% upside.

It’s additionally tipping the corporate to pay out 30 cents of absolutely franked dividends in FY23. That represents a possible 15% improve from its full-year payout of 26 cents in FY22.