Looking for an S&P/ASX 200 Index (ASX: XJO) uranium stock with the potential to stage a strong rebound in 2025?
Then you may wish to run your slide rule over Boss Energy Ltd (ASX: BOE).
Boss Energy owns the Honeymoon Uranium Project, located in South Australia, as well as 30% of the Alta Mesa Uranium Project, located in the US state of Texas. enCore Energy Corp (NASDAQ: EU) owns the other 70%.
The ASX 200 uranium stock has attracted the interest of short sellers as its shares have come under pressure amid slumping uranium prices this year.
Indeed, some short sellers will have done well, with the Boss Energy share price down 35% in 2024.
But according to Guy Keller, portfolio manager of Tribeca's Nuclear Opportunities Fund, 2025 is shaping up to be a much more positive year for Boss and other beaten down Aussie uranium producers.
Mounting demand for nuclear energy
Boss Energy isn't the only ASX 200 uranium stock that could be set to outperform in 2025, with due thanks to the US and its incoming president.
"I believe Trump will be good for nuclear and uranium supply from favoured jurisdictions," Keller said (courtesy of The Australian Financial Review).
And Keller expects uranium demand in the US to ramp up
"One of the main issues holding back new nuclear capacity in the United States has been declining long-term demand for new grid electrons," he said.
He added:
But companies like Microsoft are now willing to sign multi-decade power purchasing agreements at a substantial premium to wholesale prices, causing active nuclear reactors to apply for life extension and capacity uprates as well as plans to restart idled nuclear capacity.
Part of the boost in demand is expected to come from new generation, power-hungry, AI-enabled data centres.
"Data centre demand for clean and reliable electricity will only continue to grow globally," Keller said. "This is the beginning of a new energy paradigm and investment opportunity. This is why exposure to nuclear innovation is now roughly 25% of the portfolio."
Enter ASX 200 uranium stock Boss Energy
A number of ASX 200 uranium stocks could benefit from Trump's US election win and the broader long-term forecast for global nuclear demand growth. However, Keller singled out Boss Energy as the company with the most near-term upside potential.
"Boss Energy is the favourite. They are producing uranium from two mines, Honeymoon in South Australia and Alta Mesa in Texas," he said.
According to Keller (quoted by the AFR):
Trading on a price to net asset value multiple of roughly 0.50 times when it should be closer to one times, it sits alongside advanced development projects on greenfield sites, which means it is undervalued.
Like many of its ASX-listed peers, it suffers from elevated short interest, but that is a thematic trade and not company-specific.
When those shorts move on to another commodity thematic, all the ASX-uranium stocks will play catch-up to their US peers.
