Shares in Deep Yellow Ltd (ASX: DYL) have fallen by more than a third over the past year, but the analysts at Morgans think it’s time to take another look at the company.

The broker has a speculative buy rating on Deep Yellow shares and a bullish price target, which I’ll get to shortly.

First let’s look at why they believe Deep Yellow could be in line for a rerating.

Deep Yellow’s major project heading in the right direction

Deep Yellow’s flagship project is the Tumas uranium project in Namibia, where the company is targeting a final investment decision in the fourth quarter of 2026.

The company in August announced it had secured a long-term water supply for the mine, as well as an agreement for Namibian private company Oponona to take a 5% stake in the project, in line with the Namibian Ministry of Mines and Energy’s requirements for supporting local ownership.

Regarding the recent updates, Deep Yellow Managing Director Greg Field said:

These milestones build on completed bulk earthworks, major civil and concrete works now underway, and continued progress across engineering, procurement, optimisation and financing. Tumas is becoming progressively more de-risked and construction-ready. We have real momentum and will continue systematically closing out the remaining workstreams as we build the strongest possible platform for a disciplined investment decision.

Deep Yellow shares looking cheap

In a research note to clients, Morgans said that since a previous decision to defer the project’s sanctioning, “uranium market conditions have improved materially, detailed engineering has advanced, key infrastructure agreements have been executed and project financing work has continued”.

Morgans added:

We believe Tumas is emerging as one of the more advanced undeveloped uranium projects globally, although funding, execution and contracting risks remain. With several important milestones now largely complete, we think investors should reacquaint themselves with the asset before the next phase of the story begins.

Morgans also said the decision to delay the project had “aged well”, with long-term uranium prices strengthening and contracting conditions more supportive of producers.

They added that Namibia was a tier-1 jurisdiction, the deposit was a well-understood style, and it had a long-life production profile which compared favourably with many undeveloped peers.

The broker also noted:

DYL offers leveraged exposure to a strengthening uranium market through its flagship Tumas Project. We believe the market is underappreciating the value of a development-ready uranium asset with significant leverage to improving industry fundamentals.

Morgans has a target price of $1.95 on Deep Yellow shares compared to the current price of $1.30.

Deep Yellow is valued at $1.32 billion.

The post This ASX uranium stock could rise 40%: Broker appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares tipped by brokers to return 63% to 125%
• Deep Yellow delivers key Tumas milestones and secures project progress in Namibia

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 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.

One of my favourite types of investments to look at are ASX dividend shares that can provide excellent passive income.

There are many names on the ASX that are providing dividends, but they’re nowhere near as well-known as some stocks like Commonwealth Bank of Australia (ASX: CBA).

In my view, I’d choose the below ASX passive income shares over CBA shares every time.

Australian United Investment Company Ltd (ASX: AUI)

CBA is a high-quality bank, but it’s a singular business. Owning shares in a listed investment company (LIC) means getting exposure to a compelling portfolio. Each LIC has a portfolio built around its investment strategy.

AUI is one of the most underrated LICs around, in my view. Most of its portfolio focuses on ASX blue-chip shares, though a portion of its assets is also invested in Vanguard funds that provide exposure to international shares, adding useful diversification and alternative returns.

Currently, its biggest holdings are CBA, BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), ANZ Group Holdings Ltd (ASX: ANZ), CSL Ltd (ASX: CSL), Wesfarmers Ltd (ASX: WES), Westpac Banking Corp (ASX: WBC), Transurban Group (ASX: TCL) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

For the last 30 years, the LIC has either grown or maintained its regular dividend, which is an excellent record of payout consistency by the ASX passive income share.

Excluding special dividends, its current grossed-up dividend yield is 4.4%, including franking credits, at the time of writing.

It has paid a special dividend each year for the past three years of 8 cents per share. If that’s included, then the grossed-up dividend yield rises to 5.4%, including franking credits.

Future Generation Global Ltd (ASX: FGG)

The other ASX passive income share I want to highlight is another LIC, except this one has a much larger focus on global shares, while AUI is focused on ASX shares.

Future Generation Global doesn’t charge management fees or performance fees. Instead, it invests in the portfolios of various global-focused fund managers, who all work for free to enable the LIC to donate 1% of its net assets each to youth mental health charities. How good is that?

Some of the fund managers involved include Antipodes, Plato, WCM, Muncro, Vinva, Cooper Investors, Paradice, Morphic, Fairlight and Langdon.

For such a diverse array of managers and investment strategies, I think the portfolio has performed adequately, with an average return of 13% per year over the last three years.

The ASX passive income share has increased its annual payout every year for the past seven years in a row, which is an impressive streak. It expects to grow its annual payout to 8.4 cents per share in FY26, translating into a forward grossed-up dividend yield of 7.3%, including franking credits.

I like the combination of supporting younger people, international share diversification and good dividends.

$500 per month of passive income

Achieving an average income of $500 per month targets $6,000 annually.

Between the two stocks above, their average dividend yield is 6.35%. If we were to invest evenly between them, it’d take an investment of $94,500 to generate that income. I’d be very happy to make that investment.  

The post 2 ASX passive income share ideas I’d use to generate $500 a month in 2027 appeared first on The Motley Fool Australia.

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• How much is needed in superannuation to target a $95,000 annual passive income?
• How much do I need to retire on $75,000 a year at 45?
• The ASX share I just bought for my child
• 2 ASX blue-chip shares offering big dividend yields
• How much do I need to retire on $80,000 a year at 50?

Motley Fool contributor Tristan Harrison has positions in Future Generation Global and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Transurban Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Transurban Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, CSL, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing day and sank into the red. The benchmark index fell 0.7% to 8,702 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for another poor session on Friday following a mixed night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 28 points or 0.3% lower this morning. On Wall Street, the Dow Jones was down 0.3%, the S&P 500 edged lower, and the Nasdaq rose slightly.

Oil prices rise

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a good finish to the week after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 2.9% to US$94.80 a barrel and the Brent crude oil price is up 3.85% to US$107.06 a barrel. This was despite reports of talks for a phased reopening of the Strait of Hormuz.

Buy Premier Investments shares

The Premier Investments Ltd (ASX: PMV) share price could be cheap according to Bell Potter. In response to its results release, the broker has retained its buy rating with a trimmed price target of $15.50. It said: “While we expect a period of slow growth for PMV near to medium term, we view PMV’s forward multiple as attractive considering the Premier Retail division together with PMV’s equity investments, land bank and cash position while retaining a strong balance sheet supportive of M&A. Our SOTP sees an attractive ~$1.6b EV for the key PA brand vs PMV’s $1.9b market capitalization.”

Gold price edges lower

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a soft finish to the week after the gold price edged lower overnight. According to CNBC, the gold futures price is down 0.15% to US$4,310.1 an ounce. A rise in bond yields to fresh highs put pressure on the gold price.

GenusPlus shares given buy rating

The team at Bell Potter is also recommending GenusPlus Group Ltd (ASX: GNP) shares as a buy. This morning, the broker has retained its buy rating and $12.80 price target on the infrastructure services provider’s shares. It said: “GNP is working through a record tender pipeline valued at $3.6b (as at FY26; up 50% YoY) across the transmission, BESS, rail and wind farm construction markets. GNP’s FY27 PE of 19.1x is undemanding; we see potential for a re-rate towards 22-24x in the near-term, a justified premium to the peer group average. Catalysts to drive this multiple re-rate include: 1) a guidance upgrade (we view the FY27 guidance as conservative); 2) strong conversion of the tender pipeline; and 3) further M&A.”

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

More reading

• How to top up your superannuation if you’re 40 and falling behind
• How much superannuation do I need to earn $2,000 per week in passive income?
• Here are the top 10 ASX 200 shares today
• 6 ASX 200 shares scoring renewed buy calls this week
• ASX 200 slides as investors head for the exits. Is there more pain to come?

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended GenusPlus Group. The Motley Fool Australia has recommended GenusPlus Group and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.