Uranium is getting a lot of attention from ASX investors in 2024.
With many countries seeing nuclear power as the answer to clean energy, the demand outlook for the chemical element has become incredibly positive.
However, this is happening at a time when uranium supply is under pressure due to softer-than-expected production in Kazakhstan, which is the world's largest producer.
In addition, the United States is in the process of banning Russian uranium, which is just adding to the supply issues.
But this is all good news for ASX uranium stocks, which stand to benefit greatly from sky-high prices of the chemical element.
How can you invest in uranium on the ASX?
Fortunately for investors, there are a good number of uranium stocks listed on the ASX.
This includes Alligator Energy Ltd (ASX: AGE), Bannerman Energy Ltd (ASX: BMN), Boss Energy Ltd (ASX: BOE), Deep Yellow Limited (ASX: DYL), Paladin Energy Ltd (ASX: PDN) and Peninsula Energy Ltd (ASX: PEN).
Investors can also choose to invest in exchange-traded funds (ETF) instead to gain exposure to this side of the market.
The Betashares Global Uranium ETF (ASX: URNM) aims to track the performance of an index that provides investors with access to a portfolio of leading companies in the global uranium industry.
As well as local players like Boss Energy and Paladin Energy, you would be buying a slice of giants Cameco Corp (NYSE: CCJ) and Kazakhstan's Kazatomprom.
Which uranium stocks do brokers like?
Given how ASX uranium stocks have rocketed over the last 12 months, investors may be wondering which ones are still in the buy zone.
Well, Bell Potter sees value in Boss Energy's shares. It currently has a buy rating and a $6.35 price target on them, which implies a potential upside of 13% for investors.
Over at Morgan Stanley, its analysts have an overweight rating and a $17.45 price target on Paladin Energy's shares. Though, this offers only a modest upside of approximately 3% from current levels.
Deep Yellow is another ASX uranium stock that Bell Potter likes. It has a buy rating and a $1.90 price target on the Tumas project owner's shares. This suggests a potential upside of 13% is possible for investors from current levels.
Finally, Bell Potter sees the most value in Alligator Energy shares with its buy rating and 10 cents price target. This is over 50% higher than where the uranium stock trades today.
