Deep Yellow's 'Development-Ready' Uranium Project Undervalued
Dow Jones08:40
0040 GMT - The market underappreciates the value of Deep Yellow's "development-ready" Tumas uranium project, says Morgans. While the company faces financing, execution and market risks, it also has "significant leverage to improving fundamentals," says the broker. Deep Yellow recently deferred a final investment decision on Tumas, citing soft equity market conditions. Morgans assumes a 12-month delay to the decision. It reiterates a speculative buy rating on the stock, with a target price of 1.50 Australian dollars. "The need to secure funding for Tumas, including a likely equity component, is expected to remain a key overhang on the stock," says the broker. Shares are down 0.3% at A$0.7325.
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