Boss Energy Ltd (ASX: BOE) shares could be dirt cheap at current levels.
That's the view of analysts at Bell Potter, which are tipping the ASX 200 uranium stock to rocket from current levels.
Image source: Getty Images
What is the broker saying about Boss Energy?
Bell Potter notes that the uranium producer delivered a result that was short of expectations in FY 2025.
However, this was largely due to non-cash items. As a result, it remains cautiously optimistic on the ASX 200 uranium stock. It said:
The headline numbers are impacted by largely non-cash items, being the mark to market on uranium inventory and the recognition of inventory sales through COGS as at market pricing. On our calculations, BOE has a further 0.4Mlbs of the original strategic inventory, meaning COGS should not be impacted from 2HFY26 onwards. Cash flow generation was the highlight.
In addition, Bell Potter believes that concerns about its production outlook could be resolved in the near term, which could be a catalyst to re-rating its shares. It explains:
The stock has a significant overhang currently, with the production beyond FY26 largely unknown following the comments made in the FY26 guidance statement (released 27 Aug). We are yet to hear any further updates from management on this, but suspect the management team is working towards a solution or at least an update as to the path forward. As it stands, we are assuming production remains broadly inline with FY26 guidance for FY27.
Big returns for this ASX 20 uranium stock
According to the note, the broker has retained its buy rating and $2.90 price target on Boss Energy's shares.
Based on its current share price of $1.96, this implies potential upside of almost 50% for investors over the next 12 months.
To put that into context, a $10,000 investment would be worth close to $15,000 by this time next year if Bell Potter is on the money with its recommendation.
Commenting on its buy recommendation, the broker said:
We've incorporated the FY25 result into our modelling, which sees some minor adjustments. Our Buy recommendation and $2.90/sh target price remain unchanged. Our valuation assumes production at Honeymoon over the short 10Y mine life is limited to ~1.7Mlbs pa and costs remain elevated, until such a time that management can guide differently. Contracting activity may pick up over the coming months post the WNA conference in London, which may contribute to share price appreciation. EPS changes in this report are FY26 -6% and FY28 -1%.
