Macquarie expects a favorable outcome for Deep Yellow pending an imminent investment decision for its Tumas project in Namibia. This decision could position the company for production by 2027 and provide a competitive edge over rivals facing delays. The stock rating remains positive, with four analysts recommending a buy, despite a decline of 10.7% year-to-date.
Macquarie forecasts a positive trajectory for Deep Yellow (DYL), anticipating the final investment decision (FID) for the Tumas project in Namibia to occur imminently. This decision is pivotal as it could propel the company towards production by early 2027. The brokerage reports that this advancement might enable Deep Yellow to capitalize on an early-mover advantage in the contracting sector, especially as competitors such as NexGen and Denison face delays.
Macquarie has maintained an “outperform” rating for Deep Yellow, setting a price target of A$1.90 per share. Analysts are notably bullish on the stock, with four out of five recommending a “buy”; however, one analyst rates it a “strong sell.” The average price target among these analysts stands at A$1.62, based on data gathered by LSEG. Despite these optimistic forecasts, the stock has declined by 10.7% this year to date.
In summary, Macquarie’s assessment of Deep Yellow suggests a promising outlook driven by the forthcoming investment decision for the Tumas project, potentially positioning the company advantageously within the uranium sector. With a majority of analysts endorsing the stock, Deep Yellow is poised for considerable growth, yet it currently faces a year-to-date decline in value.
Original Source: www.tradingview.com
