DUG Technology Ltd, the Technology sector company, was revisited by a Wall Street analyst on August 25. Analyst Caleb Weng from PAC Partners maintained a Buy rating on the stock and has a A$2.50 price target.
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Caleb Weng has given his Buy rating due to a combination of factors that suggest a positive outlook for DUG Technology Ltd. The company’s orderbook has shown significant growth, particularly in the second half of FY25, which sets a strong foundation for future growth in FY26. Additionally, the successful conclusion of the eMP-FWI trials has sparked initial interest from clients, positioning DUG as a leader in seismic processing technology.
Furthermore, Caleb anticipates an expansion in margins for FY26, driven by increased top-line revenue that will better leverage the company’s fixed cost base. The shift towards more compute-intensive MP-FWI work is expected to enhance efficiency. Despite slightly lower than expected revenue and EBITDA figures, the EBITDA margin improved significantly in the second half of FY25. This, along with ongoing customer uptake of new technologies and growth in software sales, supports the Buy recommendation with a price target of $2.50 per share.
According to TipRanks, Weng is a 4-star analyst with an average return of 16.5% and a 56.82% success rate. Weng covers the Technology sector, focusing on stocks such as DUG Technology Ltd, Credit Clear Limited, and EPX.
In another report released on August 25, Ord Minnett also maintained a Buy rating on the stock with a A$2.08 price target.