Uranium fever! Why Macquarie just raised its price target on Boss Energy shares

Macquarie has upped its outlook for Boss Energy shares. Here's why.

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Key points

  • Boss Energy shares increased by 19.8% on Wednesday amid renewed investor interest in uranium, bolstered by the US government's significant investment in nuclear power.
  • Boss Energy's Honeymoon project exceeded analyst expectations with record quarterly uranium production and lower-than-expected costs, prompting an investment review from Macquarie Group.
  • Macquarie raised its price target for Boss Energy shares, reflecting positive production forecasts and cost efficiencies.

Boss Energy Ltd (ASX: BOE) shares are edging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) uranium miner closed yesterday trading for $1.91. In late morning trade on Friday, shares are changing hands for $1.92 apiece, up 0.5%.

But the real price action happened on Wednesday.

If you were watching the charts, you'll have seen Boss Energy shares close up a whopping 19.8% on Wednesday.

That outsized daily gain was partly driven by renewed investor enthusiasm in global uranium markets. This followed news that the United States government will invest at least US$80 billion (AU$121 billion) to acquire nuclear reactors from Westinghouse Electric Co. The Trump administration's nuclear power expansion is the biggest witnessed in the US in decades.

While that news lifted all the top ASX uranium stocks, Boss Energy led the charge, with the company fortuitously releasing its September quarterly update on the day.

On the heels of that update, the analysts at Macquarie Group Ltd (ASX: MQG) also raised their price target for Boss Energy shares by 8%.

Here's why.

Boss Energy shares in the spotlight

As you may know, Boss Energy has two producing uranium projects. It's the 100% owner and operator of the Honeymoon project in South Australia. And Boss owns 30% of the Alta Mesa uranium project in the US state of Texas. Alta Mesa is operated by enCore Energy, which owns the other 70%.

Both projects are ramping up production with Honeymoon targeting 1.6 million pounds of uranium production in FY 2026. Though that target is currently under review.

And Boss Energy shares got a big boost this week, with Honeymoon exceeding consensus analyst and Macquarie expectations in the September quarter.

Boss reported record quarterly production of 385,910 pounds of U3O8 drummed, which was up 11% from the prior quarter. And costs came in below FY 2026 guidance.

Commenting on those results, Macquarie said:

Drummed U308 at Honeymoon of 386klb was 10%/2% above MRE/Visible Alpha (VA) consensus (PLS to IX tenors held up at 81mg/L vs 88mg/L last quarter). C1 costs of A$34/lb (US$22/lb) are tracking below the FY26 guide (A$41-45/lb or US$27-29/ lb) so far.

Initial results from optimised lixiviant have been positive, driving increased tenors where applied (overall 81mg/L for all wellfields this quarter vs 88mg/L last quarter). IX column 4 is commissioning, and wellfield 4 was brought online. Management expects the East Kalkaroo trunkline to be completed in 3QFY26 (March).

Macquarie maintained its neutral rating on Boss Energy shares but raised its price target from $1.80 to $1.95 a share based on lower costs and higher estimated FY 2027 uranium production.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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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