Are you wanting some exposure to the energy sector? If you are, then it could be worth checking out the two ASX energy shares listed below.
They have just been named as buys by analysts at Bell Potter. Here's what the broker is saying:
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Boss Energy Ltd (ASX: BOE)
The broker thinks that this uranium producer is a top option for investors looking for energy exposure.
It has speculative buy rating and $6.34 price target on its shares. This implies potential upside of 26% over the next 12 months.
It is bullish on the company due to the favourable outlook for uranium and its diversified revenue streams. The broker explains:
Uranium fundamentals continue to support our thesis being 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. The recent acquisition of a 30% interest in the Alta Mesa joint venture, diversifies BOE's operations and revenue streams, making BOE one of only two geographically diversified uranium producers in CY24.
Strike Energy Ltd (ASX: STX)
Another ASX energy share that Bell Potter is bullish on is Strike Energy. It is an oil and gas producer, explorer, and developer.
Its analysts have a speculative buy rating and 32 cents price target on the company's shares. This suggests potential upside of almost 50% for investors from current levels.
Bell Potter is feeling positive about the company due to its strong balance sheet and growth outlook. And while recent drilling at the West Erregulla project has been disappointing, this is now baked into its valuation. It said:
With Walyering coming online in 2023, STX is now a producer with cash flows and a strong balance sheet to support further growth at Walyering, appraisal of its Perth Basin acreage and ultimately develop the larger scale West Erregulla project. While recent results at South Erregulla have materially de-rated STX equity, our heavily risked valuation supports a Speculative Buy recommendation.
