Macquarie anticipates a growth opportunity for Deep Yellow, projecting a final investment decision for the Tumas project in Namibia soon, potentially leading to production by early 2027. The company may benefit from a competitive advantage due to delays faced by competitors. Four analysts rate the stock as “buy,” with an average price target of A$1.62, despite a current year decline of 10.7%.
Macquarie has projected a potential growth opportunity for Australia’s Deep Yellow (DYL), anticipating a final investment decision (FID) for the Tumas uranium project in Namibia within the next few weeks. This decision is a crucial milestone that could propel DYL towards production by early 2027, influencing share price movements significantly.
The brokerage believes that the Tumas FID could provide Deep Yellow with a competitive edge in the contracting market, particularly due to delays encountered by rival companies, NexGen and Denison. Furthermore, Macquarie has maintained an “outperform” rating for DYL, with a price target set at A$1.90 per share.
Among analysts, four out of five recommend the stock as a “buy,” while one analyst issues a “strong sell” rating. The average price target for the stock stands at A$1.62, as reported by LSEG. It is important to note that DYL’s stock has experienced a decline of 10.7% year-to-date.
In summary, Deep Yellow is on track for growth with an impending final investment decision for its Tumas project in Namibia. The anticipated decision is expected to enhance the company’s market position and drive its stock price, despite the current year-to-date decline. Analysts remain generally optimistic about the stock’s future performance.
Original Source: www.tradingview.com
