Origin Energy's (ASX:ORG) profit warning on Octopus Energy, in which it holds around 20% interest, overshadowed a "solid" March quarter result, but Origin's APLNG gas business is "on track", according to a Tuesday report by The Australian, citing UBS Analyst Tom Allen.

UBS notes Origin's "strong" high-margin growth, which remains an overwhelming value driver, despite this not being the first downgrade to Octopus Energy earnings before interest, taxes, depreciation, and amortization (EBITDA), according to the report.

UBS has cut its earnings estimate for Origin Energy by 9% to 18% but said the company remains its most preferred Australian utilities exposure with a dividend yield above 5%, the report added.

UBS has maintained a buy rating on Origin Energy and reduced its price target to AU$14.10 from AU$14.30.

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