** AGL Energy AGL.AX rises as much as 3.9% to A$9.225

** Jefferies, Morningstar align on improved operational results in FY26

** Morningstar maintains fair-value estimate at A$12; expects FY@6 margins to improve

** Says market reaction to soft FY26 EBITDA outlook of ~A$1.92 bln ($1.26 bln)-A$2.22 bln overdone

** Expects investments in new batteries, future increases in electricity prices to offset drag from rising gas costs

** Jefferies cuts PT to A$11.43 from A$12.82 on uncertainties around depreciation charges

** Says there's value in AGL above share price, but it will take co longer to close gap between current PT and fair value

** YTD, AGL down 18.6%

($1 = A$1.5288)

($1 = 1.5242 Australian dollars)

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))