With some analysts saying we're entering a bull market for uranium, having a little exposure to this side of the market could potentially be a boost to your portfolio.
But which ASX uranium shares would be good options for investors? Let's find out.
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Which ASX uranium shares could be buys?
According to a note out of Bell Potter, its analysts have given the thumbs up to three uranium shares this week.
The first two that the broker rates highly are Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN). Its analysts believe these companies are best placed to capture high prices caused by a likely market shortfall. It explains:
We estimate current raw U3O8 demand at 161Mlbs, expanding to 189Mlbs by the end of the decade. We currently estimate global supply for U3O8 at ~125Mlbs, expanding by ~11.48Mlbs over 2023 with the addition of restart operations, namely McArthur River. As it stands, we currently estimate a ~24Mlbs shortfall in the market in 2023.
We continue to see value across the ASX uranium producer/ developer/ explorer complex. Near term restarts, Boss Energy Ltd (BOE, Spec Buy $3.42 Val) (Dec-23 production restart) and PDN (March-24 production restart) we believe are best positioned to capture contract price moves over the next 12-24 months.
Another ASX uranium share that the broker is positive on is Deep Yellow Limited (ASX: DYL). It adds:
Beyond this, we see opportunities for developers like Deep Yellow Ltd (DYL, Spec Buy $1.04/sh) (BPe Tumas production end CY25).
Though, it is worth noting that all these shares have speculative buy ratings. This means they carry higher than average risk. As a result, they would only really be suitable for an investor with a higher tolerance for risk.
