Boss Energy extends losses as analysts slash price targets
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The news: Uranium miner Boss Energy was the worst performing ASX 200 company for the second straight session after releasing an updated outlook on its flagship Honeymoon uranium project that sent shares tumbling on Monday.
The numbers: Boss shares were down 8.3% to $1.75 at 1:10pm AEST, having dived 44% in the previous session.
Citi (-41%), Morgan Stanley (-49%) and Macquarie (-49%) made deep cuts to their target prices on the stock, outlining concerns about Boss' higher-than-expected cost guidance for Honeymoon.
The context: Citi analysts slashed their target price 41% from $4.60 to $2.70, noting that Boss' FY26 cost forecasts are "materially above" their estimates. However, they retained a 'buy' rating on the stock due to the sharp share price correction and Citi's conviction in uranium's structural bull case.
Morgan Stanley remained 'underweight' on Boss and cut its target price by 49% from $3.25 to $1.65. Its analysts said Monday's update left "significant question marks around costs, capex, and mine life that remain largely unanswered”.
Macquarie kept its 'neutral' rating but lowered its target price 49% to $2.25. Its analysts said it could take six months for Boss' new management to "substantively update the path forward for Honeymoon", following CEO Duncan Craib's resignation last week.
UBS analysts reiterated their 'sell' rating on Boss, calling Monday's announcement "incrementally negative" compared to their expectations. They said the update delivered "more questions than answers" in relation to Honeymoon's expansion options and the company's broader strategy.
The sources: Citi research, Morgan Stanley research, Macquarie research, UBS research
