PAC Partners analyst Caleb Weng has maintained their bullish stance on DUG stock, giving a Buy rating today.
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Caleb Weng has given his Buy rating due to a combination of factors including upgraded earnings forecasts and evidence of improving profitability. He points to stronger-than-anticipated margin expansion driven by the high-margin EPIC contract, a mix shift toward more sophisticated 4D seismic work, and scale benefits on a largely fixed cost base, even though additional compute investment is expected to temper margins in the second half.
He also highlights that DUG enters the second half with solid momentum, underpinned by a full-year contribution from the Petronas EPIC contract, a robust order book, and a seasonal bias toward stronger second-half trading. Medium-term upside is supported by potential large contracts with Aramco and ADNOC, growing market share, monetisation opportunities in software and HPC solutions, and industry tailwinds from a recovery in oil and gas capital spending, all while the shares trade on undemanding valuation metrics.
According to TipRanks, Weng is a 4-star analyst with an average return of 19.7% and a 57.89% success rate. Weng covers the Technology sector, focusing on stocks such as Raiz Invest Ltd., EPX, and Credit Clear Limited.
In another report released today, Ord Minnett also maintained a Buy rating on the stock with a A$2.93 price target.