Boss Energy share price jumps 8% on bullish broker note

The Boss Energy Ltd (ASX: BOE) share price was a star performer on Thursday.

The uranium explorer’s shares rose 8% to $2.53.

Why did the Boss Energy share price surge higher?

There were a couple of catalysts for the rise by the Boss Energy share price today.

The first was a major rebound by ASX shares on Thursday following a very strong night of trade on Wall Street.

This saw the S&P/ASX 200 Index (ASX: XJO) end the day with a gain of 1.45% to 6,555 points.

What else?

Also giving the Boss Energy share price a boost was a broker note out of Bell Potter.

According to the note, the broker has retained its speculative buy rating with an improved price target of $3.51.

This implies potential upside of 44% for investors over the next 12 months even after today’s strong gain.

It commented:

We maintain our Speculative Buy recommendation and increase our valuation to $3.51/sh (previously $3.32/sh). We have rolled our model forward, which contributed the modest 6% increase in our valuation. We make no changes to forward earnings in this note. Uranium markets are recovering from a cyclical low with limited near-term supply capacity and further demand upside driven by decarbonisation efforts.

BOE represents an opportunity to gain exposure to a fully permitted project, currently on care and maintenance, in a tier 1 jurisdiction, with a comparatively short lead time to first production. In addition to this, we believe there is resource expansion upside in the current portfolio, with drilling currently underway.

The post Boss Energy share price jumps 8% on bullish broker note appeared first on The Motley Fool Australia.

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More reading

• Why is the Boss Energy share price melting 8% lower?
• Why are ASX uranium shares getting smashed on Friday?
• ASX uranium shares have had a stellar month. Are they just getting started?
• What’s the outlook for ASX uranium shares in September?
• 2 ASX uranium shares added to the ASX 300 today

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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