After starting the year strongly, a number of ASX uranium shares have pulled back in recent weeks.
This has caught the eye of Bell Potter, with the broker suggesting that investors take advantage of this weakness to pick up shares.
It highlights that "ASX uranium stocks are off to a wobbly start in 2023, despite fundamentals remaining positive."
Which ASX uranium shares are buys?
According to the note, the broker has named Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN) as its top two uranium shares to buy now, with Deep Yellow Limited (ASX: DYL) also a worthy candidate.
It has a speculative buy rating and $3.51 price target on Boss Energy shares, which implies potential upside of 63% over the next 12 months.
Whereas for Paladin Energy, the broker has a speculative buy rating and 99 cents price target on its shares. This implies potential upside of 69% between now and this time next year.
Finally, it has a speculative buy rating and $1.04 price target on Deep Yellow shares, which suggests almost 100% upside for investors.
Bell Potter explained why it is bullish on these uranium shares, it said:
BOE and PDN are our top two picks for restart operations. BOE is expecting to restart its Honeymoon uranium mine in Dec-23, with the next key catalyst being announcement of binding offtake agreements. PDN is expecting to restart the globally significant Langer Heinrich Mine in the Mar-24 quarter, with utility offtake contracts secured covering the majority of production over CY2024 and CY2025. In the developers/explorers space we like Deep Yellow Ltd (DYL – Buy Speculative, valuation $1.04/sh) on a valuation basis with two advanced projects, Tumas and Mulga Rock, looking to feed into the market towards the middle/end of the decade.
