Guess which ASX 200 share Bell Potter says could rocket 100%+

The broker thinks this share is seriously undervalued.

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The market selloff this month has created a lot of buying opportunities for investors.

But one that stand outs is the ASX 200 share in this article.

Its shares are down 29% since this time last month and could be in bargain territory according to analysts at Bell Potter.

Which ASX 200 share?

The share that is being tipped as a buy is Boss Energy Ltd (ASX: BOE).

It is the uranium producer that owns the Honeymoon project in South Australia, as well as a 30% interest in the Alta Mesa project in South Texas.

The company has also been increasing its stake in Laramide Resources (ASX: LAM) this week, which has caught the eye of Bell Potter.

It notes that while uranium mining is banned in Queensland, there's no denying that Laramide Resources has a potentially lucrative asset on its hands. This could make it very valuable if the Queensland changes its tune on uranium. The broker commented:

BOE has added to its 9% position in TSX listed Laramide Resources (LAM) via cash (A$3.9m) and issuing 5.2m in additional stock (A$11.7m) bringing its total holding to 18.4%. The acquisition was conducted without the acknowledgement of LAM at the time, and BOE has no current intention in acquiring control or making a takeover offer.

The strategic rationale for the acquisition was to gain an interest in LAM's development projects, primarily the Westmoreland Uranium project in Queensland. Queensland currently has a Moratorium on Uranium mining in the state, however there is a view that under the state LNP Government, that would be overturned.

Westmoreland is undervalued

While not everyone may agree, Bell Potter believes that the ASX 200 share got a good deal with its stake in the Westmoreland Uranium project. It said:

We see Westmoreland as an undervalued asset given the change to a LNP Government and the likelihood that the moratorium is overturned. However, we also see how some would view the timing and method of the transaction as suboptimal, with the short interest in BOE at 22%, the uranium spot pricing declining and global markets taking a risk off approach.

We do not see this as a distraction from Honeymoon, which appears to be performing exceptionally well. Should the ban be overturned, and progression made on developing Westmoreland towards production, a $15.6m price tag for 18% might not look so bad.

Big returns

In light of the above, the broker has retained its buy rating and lofty $4.80 price target on the ASX 200 share.

Based on its current share price of $2.25, this implies potential upside of 113% for investors over the next 12 months.

Bell Potter is bullish on the long term outlook for uranium and thinks investors should be taking advantage of Boss Energy's share price weakness to load up while they can. It said:

We continue to see positive fundamentals for uranium, absent the depressed spot price, and forecast a strong 3QFY25 result for Honeymoon, which would place BOE in a comfortable position to beat FY25 guidance of 850klbs.

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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