Buy these ASX uranium stocks for big returns in FY25

Bell Potter thinks these are the stocks to buy for uranium exposure.

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The uranium industry has been a great place to be over the past 12 months.

Due to supply shortages and increasing demand, the price of uranium has surged.

And with many analysts expecting these dynamics to remain for a long time to come, the price of the chemical element looks set to remain elevated for the foreseeable future.

This bodes well for ASX uranium stocks, which stand to benefit greatly from these very favourable industry conditions.

With that in mind, let's now take a look at two ASX stocks that have been named as buys and tipped to generate big returns by analysts at Bell Potter. They are as follows:

Boss Energy Ltd (ASX: BOE)

Bell Potter remains positive on this ASX uranium stock despite a slower than expected ramp up of the Honeymoon project. This morning, the broker has reaffirmed its buy rating with a trimmed price target of $5.90. Based on its current share price of $3.82, this implies potential upside of 54% for investors over the next 12 months.

The broker believes that its shares are great value after a recent pullback. Particularly given the low costs of the Honeymoon operation. It said:

We continue to see value in BOE given the pull back in the uranium sector. BOE maintains a stable balance sheet with sufficient liquidity to execute the ramp up of Honeymoon whilst progressing growth projects across Honeymoon and Alta Mesa. We continue to see Honeymoon as a low-cost restart operation, which has the capacity to generate strong margins in the current pricing environment.

Paladin Energy Ltd (ASX: PDN)

Another ASX uranium stock that could be a top buy right now according to Bell Potter is Paladin Energy. This morning, the broker has retained its buy rating on its shares with a trimmed price target of $15.70. This implies potential upside of 21% for investors.

Unlike Boss Energy, Bell Potter notes that Paladin Energy's ramp up appears to be ahead of schedule. It commented:

The Langer Heinrich ramp up appears to be running ahead of ours and consensus estimates. We have updated our uranium price deck ahead of the quarterly results for PDN, and adjusted our earnings to reflect updated FY25 guidance provided last week. This sees our production estimates lift for FY25 to 4.5Mlbs (PDN Guidance 4.0-4.5Mlbs) and sales to 3.9Mlbs (PDN Guidance 3.8-4.1Mlbs).

The broker also highlights that a major catalyst is on the horizon that could boost the ASX uranium stock. It adds:

The most significant catalyst will be the closure of the transaction to acquire Fission Uranium which is targeted by September. […] With the updated cost and production guidance our target price decreases 2.5% to $15.70/sh (previously $16.10/sh). Our valuation includes an estimated value for Fission Uranium under the assumption that the transaction is successfully completed in Sept-24. We maintain our Buy recommendation in-line with 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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