Guess which ASX uranium stock could nearly double in 2024

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

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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.

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