Best 2 ASX Energy Shares to Buy in 2024

2 min read | December 30, 2023 07:05 AM AEDT | By Team Kalkine Media

Google News:

Best 2 ASX Energy Shares to Buy in 2024 — Image source: shutterstock

Recent News

Southern Cross Electrical (ASX:SXE): Why Is This Industrial Stock Sudd...

Berkeley Energia (ASX:BKY): Are These Overlooked Penny Stocks Worth Wa...

Woodside (ASX:WDS): Could These Dividend Shares Add More Income to Sup...

Telstra (ASX:TLS): The Retirement Income Formula Hiding in Plain Sight...

Make Kalkine Media
My Trusted Source

Investors seeking diversification in their portfolios with ASX energy shares might find Bell Potter's top picks for the coming year noteworthy. The broker provides insights into the overall energy sector and highlights two potential buys for 2024.

In the broader energy sector, Bell Potter acknowledges recent themes in oil markets, emphasizing macroeconomic sentiment on demand and potential challenges within OPEC+. Global economic growth remains a concern, and conflicts in the Middle East, coupled with underinvestment by non-OPEC+ producers, pose key risks. Market volatility is expected to persist.

For uranium, Bell Potter notes increased offtake activity in the past six months, leading to a surge in U3O8 prices from US$55/lb to over $81/lb. The anticipation is for prices to stay elevated due to growing demand for nuclear energy and a limited near-term supply of U3O8.

Bell Potter's Top ASX Energy Picks:

Boss Energy Ltd (ASX: BOE):

Rating: Speculative Buy
Price Target: $5.69
Upside Potential: 38%
Reasoning: Bell Potter foresees a rising price environment in the next 6-12 months as nuclear utilities start contracting for new supply. BOE, with its 2.45Mlbs annual production portfolio, is viewed as exposed to higher prices in the short to medium term, especially as it is yet to secure an offtake agreement.

Strike Energy Ltd (ASX: STX):

Rating: Speculative Buy
Price Target: 58 cents
Upside Potential: 22%
Reasoning: Bell Potter favors this gas development company due to its positive earnings outlook post the commencement of production at Walyering. With sequential developments at South Erregulla and West Erregulla expected to drive production and earnings growth over the next 2-3 years, Strike Energy is positioned for positive momentum. The broker notes upcoming milestones, including the completion of the Talon Energy (TPD) acquisition, FID on South Erregulla in early 2024, and reserves updates.

Investors considering energy stocks in 2024 may find these insights from Bell Potter valuable as they navigate the evolving dynamics of the energy market.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.