Boss Energy Ltd (ASX: BOE) shares are finishing the week on a positive note.
In afternoon trade, the ASX uranium stock is up 2% to $4.42.
This means the Boss Energy share price is now up over 80% since this time last year.
Why is this ASX uranium stock rising?
Investors appear to be buying Boss Energy shares today after it was the subject of a bullish broker note out of Bell Potter.
According to the note, the broker has upgraded its shares to a speculative buy rating with a $5.53 price target.
This implies a potential upside of 25% for investors over the next 12 months.
'Buy the Dip'
Bell Potter made the move partly on valuation grounds following a recent pullback. It explains:
We are taking the opportunity to upgrade our recommendation on Boss Energy Ltd (BOE) to Speculative Buy from Speculative Hold. BOE has pulled back from its high of $4.85 in October when U3O8 spiked up to US$69/lb, as investors sought exposure outside the usual names.
Since then, U3O8 has moved through US$80/lb, and BOE has shed ~13% of its value. With U3O8 remaining elevated, we see an opportunity to 'Buy the Dip' with BOE.
In addition, the broker remains very positive on the outlook for the chemical element, which bodes well for this ASX uranium stock. It adds:
Uranium fundamentals continue to support our pricing thesis which is based on 1) advancement in Nuclear energy across the globe (60 reactors currently under construction) filtering through to a growing demand for U3O8 and 2) a lack of near-term supply as producers exited the market post Fukushima. BOE's Honeymoon operation is set to restart production in Dec-23, offering utilities stability of supply / jurisdiction from a known asset and management team.