Are Boss Energy shares a buy, hold or sell on new mining plans?

A return to profit is a positive for the uranium miner.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Boss Energy Ltd (ASX: BOE) recently released solid profit results and a new mining plan for its Honeymoon uranium operations in South Australia, but brokers are divided on the company's future prospects.

Two of the brokers who released research reports on the company this week have buy recommendations on the stock, while one has a neutral rating.

I'll get to the specifics of the share price targets they are forecasting shortly.

First, let's have a look at what the company released.

Two mining workers on a laptop at a mine site.

Image source: Getty Images

A welcome return to profits

Boss recorded a net profit of $2.5 million for FY26, which was a $36.7 million improvement from the previous year.

Revenue doubled to $151.1 million, with the company paying an average realised price of US$74.4 per pound of uranium.

The company provided guidance for production of 1.25 to 1.3 million pounds of uranium in the current year, which the brokers said was below expectations.

The company said:

The production and cost profile reflects the mine-development uncertainty experienced since July 2025 and Boss' disciplined decision to limit further investment in legacy wellfields, where the expected returns did not justify additional capital. This approach has preserved balance sheet strength while enabling continued investment in plant infrastructure and new value-accretive wellfields, to support the expected production ramp-up.

Boss also released a new feasibility study that envisages a wider-spaced well design for its in-situ leach mine and is forecast to keep the mine operating until at least FY34.

The company said its costs would decrease as a result, reflecting an increase in uranium concentration in the leach solution.

Brokers divided on the outlook for Boss Energy shares

The Canaccord Genuity team said they had factored in two further deposits, Jason's and Gould's Dam, into their valuation of the company, which they see providing options for mining from 2035.

They have reduced their price target on the company from $2.50 to $2, but that's still well above the current price of $1.50.

Macquarie said the new mine design provided a credible pathway to production and the "wide spaced wellfield design appears likely to be quite effective in reducing costs given 50% less infrastructure and 28% higher … grades''.

The broker said the market may have focused too much on FY27 guidance in selling off the stock, and "Honeymoon value will be better demonstrated when fully ramped at 1.9Mlb/yr''.

Macquarie has a $1.80 price target on the company.

Meanwhile, UBS has a neutral rating on the stock and a price target of $1.50.

UBS said it was not factoring the other deposits into its valuation at this stage.

Boss Energy is valued at $753.5 million.

Motley Fool contributor Cameron England 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 recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

Broker Notes

WiseTech shares are bouncing back. Is it time to buy?

Could there be more upside ahead?

Read more »

Miner looks excited as he holds a nugget of gold he has discovered.
Broker Notes

Up 53%: Why this surging ASX All Ords gold stock just earned a major broker upgrade

A top broker forecasts this fast-rising ASX gold stock could rocket another 199%.

Read more »

A baby's eyes open wide in surprise as it sucks on a milk bottle.
Broker Notes

How high do brokers think Bubs Australia shares will go?

A recovery story is on the cards for this infant formula company.

Read more »

A woman in a red dress holding up a red graph.
Broker Notes

2 ASX small-cap stocks Bell Potter thinks could return 130% to 200%

These health-focused stocks could be set for big things.

Read more »

Buy and sell signs amidst blue and red backgrounds.
Broker Notes

Buy, hold, sell: Domino's, Flight Centre, and WiseTech shares

Morgans has updated its view on these shares following results releases.

Read more »

Girl with make up and jewellery posing.
Broker Notes

After a big jump this week, what are brokers saying about the Lovisa share price?

Will the good times continue for this jewellery retailer?

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Broker Notes

Looking for a 100% gain? One broker has a miner to watch

This rare earths company is building momentum.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Broker Notes

Buy, hold, sell: Whitehaven, Endeavour, Neuren Pharmaceuticals shares

As earnings season continues, brokers have updated their ratings and 12-month price targets.

Read more »