Boss Energy Shares Drop: Goldman Sachs Issues Sell Rating

Boss Energy shares (ASX:BOE) fell 2.51% to close at A$1.56, as Goldman Sachs imitates coverage with a “Sell” rating. The investment bank’s pessimistic outlook casts a shadow over the company’s Honeymoon uranium project, raising concerns about its operational efficiency and financial viability.

The market reacted swiftly to Goldman Sachs’ assessment, adding to the pressure already weighing on Boss Energy’s stock. While the shares have shown a modest 5.78% gain since the beginning of the year, they remain significantly lower, down 40% over the past 12 months, reflecting a broader trend of investor unease surrounding the company’s prospects.

Goldman Sachs justified its “Sell” rating with a price target of A$1.20, pointing to uncertainties surrounding the Honeymoon project’s total resource recovery, production rates, and cost structures. This negative sentiment compounds earlier challenges faced by Boss Energy, notably the withdrawal of its 2021 Enhanced Feasibility Study (EFS) for the Honeymoon project. The company retracted the EFS after identifying deviations in life-of-mine production and cost assumptions. A new feasibility study, anticipated in the third quarter of 2026, aims to explore a wide-spaced wellfield design to optimize operations.

The withdrawal of the EFS in December 2025 prompted a series of analyst downgrades and price target reductions. JPMorgan downgraded the stock from “Neutral” to “Underweight,” slashing the price target to A$1.00 from A$1.60, citing similar concerns about the Honeymoon project’s uncertainties. Citi followed suit, lowering its target share price to A$1.25 from A$2.20 and downgrading the stock to “Neutral,” expressing doubts about the project’s viability and the lack of established precedents for the proposed wellfield design. UBS, while upgrading the rating from “Sell” to “Neutral” due to the share price decline, reduced its 12-month target price substantially from A$3.50 to A$2.00.

Operational hurdles have further contributed to the negative sentiment. In July 2025, Boss Energy warned of potential difficulties in achieving nameplate capacity at the Honeymoon project, citing reduced continuity of mineralization and leachability. The company also projected higher cash costs for fiscal 2026, estimating them between A$41 and A$45 per pound, a significant increase from A$35 per pound reported in the second half of fiscal 2025.