The Boss Energy Ltd (ASX: BOE) share price was a star performer on Thursday.
The uranium explorer's shares rose 8% to $2.53.
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Why did the Boss Energy share price surge higher?
There were a couple of catalysts for the rise by the Boss Energy share price today.
The first was a major rebound by ASX shares on Thursday following a very strong night of trade on Wall Street.
This saw the S&P/ASX 200 Index (ASX: XJO) end the day with a gain of 1.45% to 6,555 points.
What else?
Also giving the Boss Energy share price a boost was a broker note out of Bell Potter.
According to the note, the broker has retained its speculative buy rating with an improved price target of $3.51.
This implies potential upside of 44% for investors over the next 12 months even after today's strong gain.
It commented:
We maintain our Speculative Buy recommendation and increase our valuation to $3.51/sh (previously $3.32/sh). We have rolled our model forward, which contributed the modest 6% increase in our valuation. We make no changes to forward earnings in this note. Uranium markets are recovering from a cyclical low with limited near-term supply capacity and further demand upside driven by decarbonisation efforts.
BOE represents an opportunity to gain exposure to a fully permitted project, currently on care and maintenance, in a tier 1 jurisdiction, with a comparatively short lead time to first production. In addition to this, we believe there is resource expansion upside in the current portfolio, with drilling currently underway.
