Macquarie anticipates a positive shift for Deep Yellow with the expected final investment decision for the Tumas project, potentially leading to production by 2027. The brokerage maintains an outperform rating and highlights the possibility of an early-mover advantage. Despite a downward trend, most analysts favor a buy recommendation on the stock.
Macquarie Research has identified a positive outlook for Australia’s Deep Yellow (DYL), citing that a final investment decision (FID) for the Tumas uranium project in Namibia is expected soon. This decision is anticipated to impact DYL’s stock price significantly, potentially positioning the company for production by early 2027.
The brokerage points out that securing the Tumas FID could grant Deep Yellow an early-mover advantage in the contracting sector, especially as competitors like NexGen (NXE) and Denison (DML) have experienced setbacks. Macquarie has given DYL an “outperform” rating with a price target of A$1.90 per share.
Analysis indicates a mixed sentiment among analysts regarding DYL’s stock. Four out of five analysts recommend a “buy,” while one analyst has a “strong sell” rating, with an overall mean price target of A$1.62, as compiled by LSEG. Despite this optimism, DYL’s stock is down 10.7% year-to-date.
In summary, Deep Yellow is poised for growth following the anticipated FID for its Tumas project in Namibia. This milestone could enable the company to capitalize on its first-mover advantage in uranium contracting, setting the stage for production by 2027. Analyst ratings indicate a largely favorable outlook, despite a recent decline in stock performance.
Original Source: www.tradingview.com
