Buy ASX uranium shares now before ‘panic buying’ sets in, says expert

ASX uranium shares have soared over the past year as the commodity price skyrocketed 110% to a 17-year high.

The uranium price is currently US$106 per pound after breaching the US$100 mark earlier this month.

And broker Shaw and Partners reckons the commodity price will keep rising from here.

The broker has just raised its 12-month forecast for the uranium price by 76% from US$85 per pound to US$150 per pound.

Demand for uranium is skyrocketing as the world embraces nuclear energy as part of decarbonisation.

According to the Australian Financial Review (AFR), Shaw and Partners is urging ASX investors to buy uranium shares before “panic buying” sets in.

Andrew Hines, head of research at Shaw and Partners, said:

Panic buying could drive the uranium price materially higher.

There is a great saying in markets that ‘he who panics first, panics best’ and we recommend investors get ahead of potential panic buying.

Shaw and Partners recommend that investors go overweight on the uranium sector.

Which ASX uranium shares should you buy?

Shaw and Partners has named its five preferred ASX uranium shares.

In no particular order, the broker recommends Paladin Energy Ltd (ASX: PDN), which is the biggest ASX uranium share by market capitalisation.

The Paladin Energy share price is $1.22, up 1.67% today and up 56% over the past 12 months.

It also likes Silex Systems Ltd (ASX: SLX) shares, which are up 0.63% to $4.79 today and have risen 3.5% over the past 12 months.

Bannerman Energy Ltd (ASX: BMN) also makes the list. The Bannerman Energy share price is up 0.6% on Tuesday to $3.44 and up 80% over the past 12 months.

Shaw and Partners also likes Peninsula Energy Ltd (ASX: PEN) shares, which are up 1.82% today to 11 cents and down 30% over the past 12 months.

The broker’s final ASX uranium share tip is Lotus Resources Ltd (ASX: LOT). Lotus shares are down 3.17% to 31 cents on Tuesday but are up 27% over the past 12 months.

The post Buy ASX uranium shares now before ‘panic buying’ sets in, says expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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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