Morningstar has upgraded its medium-term proportional EBITDA estimate for Origin Energy (ASX:ORG), an Australian energy company, by an average of 7%.

This revamp follows the announcement of robust Full Year (FY) results.

Origin Energy (ASX:ORG) reported an underlying profit of A$747 million as opposed to the A$407 million reported the previous year.

The substantial hike in proportional operating earnings can be attributed partly to a potentially stronger contribution from British energy supplier Octopus, in which Origin holds a minority stake.

Although the buyout deal by Brookfield led-consortium at A$8.90 per share may be less appealing after the strong FY results, the shares still closed at A$8.51.

Despite predicting EBITDA to remain stable over the next five years due to weakening forward electricity prices from FY25 as the shift towards renewable energy gains speed, Morningstar maintained a ‘high’ uncertainty rating on the stock.

Nonetheless, it raised its fair value estimate by 1% to A$8.80 per share.

Year to date, the stock experienced a rise of 10.2% up to the last close.

Origin Energy (ASX:ORG) is an Australian energy company involved with oil and gas exploration, energy retailing, electricity generation and natural gas production.