Guess which ASX uranium stock could nearly double in 2024

Big gains could be on offer with this energy share according to Bell Potter.

| More on:
A young man wearing a black and white striped t-shirt looks surprised.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With uranium demand tipped to grow very strongly over the next couple of decades, investors have been adding exposure to this side of the market to their portfolios this year.

If you're wanting to do the same, then you may want to check out ASX uranium stock Alligator Energy Ltd (ASX: AGE).

That's because analysts at Bell Potter are feeling very positive on the company and see major upside ahead for its shares.

What's the broker saying about this ASX uranium stock?

According to the note, the broker was pleased with the recently released mineral resource estimate (MRE) update for the Blackbush deposit at the Samphire Uranium Project.

It highlights that the MRE update included an increase of 21% (+2.2Mlbs U3O8) to the indicated portion of the resource with a moderate (-5%) decrease in grade. This was slightly ahead of the broker's expectations.

In addition, Bell Potter points out that the ASX uranium stock will look to expand the mineral resources over 2024 by primarily targeting extensions to the east, south, and north of the deposit.

The sum of the above has been the reiteration of its speculative buy rating and an increase to its price target by 25% to 10 cents from 8 cents.

Based on the current Alligator Energy share price of 5.2 cents, this implies a potential upside of 92% for investors over the next 12 months.

The broker concludes:

We maintain our speculative Buy recommendation and increase our valuation to $0.10/sh (previously $0.08/sh). Our valuation for AGE is based on a risked assessment of the Samphire uranium project and assumed values for additional exploration assets within AGE's portfolio. As AGE is yet to produce revenue and cashflow from its projects it is classified as Speculative under our ratings structure.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Share Fallers

Why did this ASX All Ords stock just crash 45%?

Investors are sending the ASX All Ords stock tumbling today. But why?

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
Energy Shares

What Bill Gates, ASX uranium shares and the AI revolution have in common

ASX uranium shares could be tapped to make up for banned Russian imports in the US.

Read more »

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Energy Shares

Here's the earnings forecast out to 2027 for Pilbara Minerals shares

Can this lithium miner charge up its profit over the next few years?

Read more »

A miner stands in front oh an excavator at a mine site

3 reasons ASX uranium stocks can keep charging higher into 2025

I think the recent sell-down in ASX uranium stocks has been overdone. Here’s why.

Read more »

light bulb surrounded by green hydrogen and renewable energy icons
Energy Shares

What's put the wind up AGL shares on Friday?

AGL has outlined where it expects to invest for the energy transition.

Read more »

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
Energy Shares

Why is ASX 200 uranium stock Boss Energy flying higher on Friday?

ASX 200 investors are snapping up Boss Energy shares today. But why?

Read more »

Three coal miners smiling while underground
Dividend Investing

Is the 11% dividend yield from Yancoal shares too good to be true?

Can you ever rely on an 11% dividend yield?

Read more »

sad looking petroleum worker standing next to oil drill
Energy Shares

Woodside shares hit a multi-year low this week, should you buy?

Is this oil and gas giant an unloved opportunity?

Read more »