Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - JPMorgan has initiated coverage on Deep Yellow Ltd (ASX:DYL) with a Neutral rating and a price target of AUD2.00, according to a research note published Thursday.
The Australian uranium pure-play company has two development assets expected to enter production before 2030, with Tumas in Namibia and Mulga Rock in Western Australia hosting significant resources that could enable Deep Yellow to become a producer of more than 7 million pounds of uranium annually.
JPMorgan projects first production at the Tumas site in the second half of 2028, followed by Mulga Rock in the second half of 2030, with the firm’s net present value calculation split almost equally between the two assets.
The research note highlights that Deep Yellow’s management team, led by John Borshoff and composed largely of former Paladin executives, has a successful track record of advancing assets from exploration to production, particularly with the Langer Heinrich and Kayeiekera projects.
With Deep Yellow shares up 81% year-to-date compared to the ASX200’s 9.5% gain, JPMorgan believes the upside associated with the company’s growth potential is largely reflected in the current share price, which trades broadly in line with the firm’s NPV-based valuation using an $85 per pound long-term uranium price assumption.
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