When it comes to ASX uranium stocks, there are a lot of options for Aussie investors to choose from.

This is good news given that some analysts believe that a long term bull market is coming for the chemical element due to nuclear power adoption.

But which uranium stocks are buys right now? Let's take a look at one that has just scored a buy rating from a leading broker.

Broker tips ASX uranium stock as a buy

According to a note out of Bell Potter, its analysts have initiated coverage on Nexgen Energy (ASX: NXG).

NexGen Energy is a Canadian focused uranium explorer and developer. Its flagship project is the very promising, high-grade Rook-1 project, which is situated in Saskatchewan, Canada.

Rook-1 is currently in the process of finalising permitting requirements with the Canadian Nuclear Safety Commission (CNSC). From receipt of the final federal permit, it will begin construction activities that are scheduled to take ~40 months. This should see first production in 2029.

Commenting on its initiation the broker said:

We initiate on NexGen Energy Ltd with a Buy (speculative) rating and an $17.00/sh valuation. NXG is a 1:1 CDI on the TSX primary listing NXE, we will refer to NXE in this report. NXE's primary asset, the Rook-1 project, which includes the Arrow deposit, is one of the highest-grade uranium projects under development.

We estimate an un-risked NPV10% of C$5,546m for Rook-1, with optionality for additional production upside through other zones, for which we estimate are currently worth C$3,648m. Over the life of mine (LOM) we anticipate Rook-1 to average C$1.7b in EBITDA per annum.

Big (high-risk) returns

The note reveals that Bell Potter has started with a speculative buy rating and $17.00 price target.

Based on its current share price of $12.91, this implies potential upside of 32% for investors over the next 12 months.

Bell Potter thinks that the ASX uranium stock could be a great way to play a potential structural supply deficit in uranium markets. It explains:

We initiate on NXE with a speculative Buy recommendation and a $17.00/sh valuation. Rook-1 is a top-tier uranium development project in northern Saskatchewan, Canada, evidenced by its vast Ore Reserve (239Mlbs) and large production potential (~30Mlbpa production capacity).

We continue to forecast a structural supply deficit in uranium markets (currently ~30Mlbs), with ongoing risks around security of supply. The recent bans on exportation of Russian enriched fuel to the US heightens the need for expansion in Western uranium production capacity, and highlights the attractiveness of NXE and Rook-1.