Shares in Deep Yellow Ltd (ASX: DYL) have crashed to a 12-month low after the company decided not to go ahead with its flagship Tumas uranium project this quarter.

The company said Tumas remained a world-class, greenfields uranium project, but that it had determined that current equity market conditions did not support going ahead with a final investment decision.

The analyst teams at both Macquarie and Morgans have since issued new research notes on the uranium company, with both expecting significant share price upside.

Work to continue proving up the project

Management said it had made strong progress in areas such as concrete preparation, reinforcing steel installation and the award of key construction contracts.

Managing Director Greg Field said:

Despite the compelling global uranium market fundamentals, challenging equity market conditions continue to constrain funding options for uranium developers. Against this backdrop, we believe it is prudent to defer FID beyond Q4 2026 while maintaining construction momentum and progressing our funding strategy to ensure Tumas is well positioned to advance when market conditions improve. The commencement of civil works on schedule represents another significant milestone for Tumas, reflecting the considerable progress achieved across engineering, procurement and construction readiness as we systematically de-risk the project’s development.

Deep Yellow said work on an updated value model for the mine was nearing completion and would be released to the market once finished.

About 440 contractors and employees had also been inducted to work on the project.

Shares looking very cheap, brokers say

In a research note, Morgans said the withdrawal of the FID timeline was not altogether surprising given the weakness in the company’s share price.

They added:

In our view, raising equity at current levels would have represented an unattractive funding outcome for existing shareholders. Importantly, we view this as a delay rather than a change in strategy, with DYL remaining focused on advancing Tumas and positioning the project for a future FID.

Morgans is forecasting a 12-month delay to a final investment decision, “resulting in a corresponding reduction in our discounted cash flow valuation as future cash flows are delayed”.

The broker reduced its price target on Deep Yellow shares from $1.95 to $1.50, compared with 76 cents at the time of writing.

They added:

While financing, execution and uranium market risks remain, we believe the market is underappreciating the value of a development ready uranium asset with significant leverage to improving fundamentals. That said, the need to secure funding for Tumas, including a likely equity component, is expected to remain a key overhang on the stock.

Macquarie has a price target of $1.95 on Deep Yellow shares.

The post This ASX uranium company is set to surge: Brokers appeared first on The Motley Fool Australia.

More reading

• I think this ASX share is a bargain buy after hitting a 52-week low: Here’s why
• Deep Yellow updates on Tumas project progress, delays FID
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• Here are the top 10 ASX 200 shares today
• 3 ASX shares tipped to fly 109% to 322% higher

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares are one of the few ASX blue-chip stock options that aren’t about banking or commodities. For that reason alone, it could be a solid option to consider for passive income.

These days, telecommunications could be one of the most defensive industries, given how important an internet connection is for households and businesses.

There’s no certainty around how technology will evolve in the coming years. However, data will likely become increasingly important, and I believe Telstra is well suited to meet that demand.

I think 5G (and 6G in the future) could increasingly challenge in the home internet market space. Telstra’s position as the current market leader in mobile, and its financial firepower to invest the most, could mean capturing some of the dollars currently going to the NBN.

During FY26, the number of 5G fixed wireless subscribers increased by 20.7% to 146,000.

Turning to Telstra’s FY26 performance, statutory earnings per share (EPS) grew by 5.3% to 19.9 cents, and cash EPS increased 13.8% to 25.5 cents. This helped fund a 10.5% increase in the dividend per share to 21 cents

What could the 2027 dividend payout be?

According to the projection on CMC Invest, the ASX telco share could deliver a larger payout to shareholders in FY27.

The current forecast suggests the company could hike its dividend to 22 cents per share in the 2027 financial year. That would be a year-over-year increase of 4.75%, which would noticeably outpace current inflation.

At the time of writing, that possible payout translates into a forward dividend yield of 4.6% excluding franking credits and 6.6% including franking credits.

There are not many ASX blue-chip shares that offer a dividend yield that high, whilst also growing the payout at a solid pace.

How many Telstra shares are needed for $12,000 of annual passive income?

To earn that much dividend income, we’re talking about a large investment. But it depends on whether an investor wants to include or exclude franking credits as part of the dividend income total.

If an investor doesn’t include franking credits, then to earn $12,000 per year of dividend cash, it’d take 54,546 Telstra shares.

If we include the franking credits, it would take 39,358 Telstra shares, assuming the same level of franking as FY26.

Overall, I think the ASX telco share has a promising future as an ASX dividend share. The 274,000 increase in mobile handheld users in FY26 (including 235,000 wholesale subscribers) is a strong driver of ongoing dividend growth. The future looks positive to me.

The post How many Telstra shares do I need to buy for $12,000 of passive income in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.45% to 8,845.7 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set for a tough session on Tuesday following a mixed start to the week in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 77 points or 0.85% lower. On Wall Street, the Dow Jones fell 0.1%, but the S&P 500 rose 0.4% and the Nasdaq jumped 1.1%.

Sell New Hope shares

Bell Potter thinks New Hope Corporation Ltd (ASX: NHC) shares are overvalued. This morning, the broker has retained its sell rating on the coal miner’s shares with an improved price target of $5.30. It said: “We maintain a Sell recommendation. Our $5.30/sh TP already incorporates a 15% premium to our sum-of-the-parts valuation, reflecting NHC’s leverage to global energy security themes amplified by recent geopolitical tensions. We expect energy markets will normalise over the near-term. While the Malabar acquisition will materially strengthen NHC’s long-term production outlook, Maxwell’s longwall ramp-up to 5Mtpa saleable production brings elevated operational complexity over the medium-term.”

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch following a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.25% to US$103.69 a barrel and the Brent crude oil price is down 0.45% to US$109.39 a barrel. Overnight there were more reports of Houthi attacks on Saudi infrastructure.

Sigma Healthcare shares downgraded

Sigma Healthcare Ltd (ASX: SIG) shares will be on watch on Tuesday after being hit with a broker downgrade. According to a note out of Bell Potter, it has downgraded the Chemist Warehouse owner’s shares to a hold rating (from buy) with a steady price target of $3.00. It said: “The recent flight to safety away from tech is probably responsible for the rally in the SIG market price over recent weeks, nevertheless the stock remains expensive relative to growth outlook. In the absence of a significant upgrade, our recommendation is adjusted to Hold from Buy. PT is unchanged at $3.00.”

Gold price falls

ASX 200 gold shares including Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) could have a subdued session on Tuesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.5% to US$4,159.8 an ounce. Higher US Treasury yields weighed on the precious metal.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• New Hope to create $6.3bn coal group with Malabar merger
• Experts name 3 top ASX shares to buy this week
• 5 things to watch on the ASX 200 on Monday
• How much could the Sigma Healthcare share price rise in the next year?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.