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

The broker thinks this share is seriously undervalued.

| More on:
Man with rocket wings which have flames coming out of them.

Image source: Getty Images

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

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.

Should you invest $1,000 in Boss Resources Limited right now?

Before you buy Boss Resources Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Boss Resources Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

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.

More on Broker Notes

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Broker Notes

Why this top Australian stock could rise 30% in 12 months

Bell Potter thinks this stock is dirt cheap at current levels.

Read more »

Cropped view of senior man playing with puzzles.
Broker Notes

2 no-brainer ASX shares to buy after the market selloff

Analysts think these shares are worth putting in your portfolio without a second thought.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Broker Notes

These top ASX shares could rise 35% to 70%

Analysts are feeling very bullish about these companies. But why? Let's find out.

Read more »

Man presses green buy button and red sell button on a graph.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Broker Notes

Guess which ASX 100 stock Goldman Sachs just upgraded

Let's see which stock Goldman Sachs is feeling more upbeat about.

Read more »

Piggybank with an army helmet and a drone next to it, symbolising a rising DroneShield share price.
Broker Notes

Brokers rate these 2 ASX growth stocks as top buys

Both of these names are well on the growth route from 2025.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Broker Notes

The best ASX shares to buy after the market selloff

Bell Potter thinks these shares could be great options following the market meltdown.

Read more »