Morgan Stanley upgrades boost ASX uranium stocks
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The news: Uranium stocks rose on the ASX after Morgan Stanley upgraded its earnings forecasts on uranium majors Boss Energy and Paladin Energy.
The numbers: Boss was up 3.7% to $2.79 by 1:55pm AEST, having shed 30% since January. Morgan Stanley raised its earnings per share (EPS) forecasts on Boss by 84% in FY25, 55% in FY26 and 59% in FY27.
However, Morgan Stanley slashed its price target for Boss by 29%, from $4.25 to $3, noting changes to its medium-term cost estimates at Boss' Honeymoon and Alta Mesa projects.
Meanwhile, Paladin rose 5.7% to $9.66 after Morgan Stanley lifted its EPS forecasts by 17% in FY25, 23% in FY26 and 46% in FY27, and hiked its price target 3% from $12 to $12.40.
Fellow uranium major Deep Yellow also surged 7.1% to $1.24, making it the third best performing stock across the ASX 200.
Materials was the best performing sector on the ASX, adding 1.79%.
The context: Morgan Stanley said that EPS upgrades to Boss and Paladin from FY25 to FY27 followed increases to its uranium price forecasts in CY25 to CY27.
Shares in Boss, Paladin and Deep Yellow soared last week after Russian President Vladimir Putin asked his government to consider limits on exports of commodities, including uranium.
The source: Morgan Stanley research
