PAC Partners analyst Caleb Weng has maintained their bullish stance on DUG stock, giving a Buy rating on February 27.
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Caleb Weng has given his Buy rating due to a combination of factors linked to a strengthening outlook for DUG’s core seismic processing and imaging business. He highlights that a growing wave of sanctioned deepwater oil and gas projects in key basins such as the Middle East, Brazil, and the Gulf of Mexico is set to materially lift demand from the second half of 2026 and into the medium term.
He also notes that many of these deepwater developments are greenfield discoveries from the prior oil cycle, which are now progressing toward drilling and require extensive reprocessing of existing seismic datasets. Because seismic processing and imaging typically represent a modest share of total exploration spending yet must be refreshed every few years as technology improves, Weng sees a durable and expanding revenue pipeline that underpins his $3.20 price target and Buy recommendation.
In another report released on February 27, Ord Minnett also maintained a Buy rating on the stock with a A$2.93 price target.