PAC Partners analyst Caleb Weng maintained a Buy rating on DUG Technology Ltd yesterday and set a price target of A$3.20.
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Caleb Weng has given his Buy rating due to a combination of factors that highlight the promising outlook for DUG Technology Ltd. The company has secured a significant contract with Petronas, which is expected to boost its earnings substantially starting in the second half of FY26. This contract, with an estimated EBIT margin of 40-45%, underscores the competitiveness of DUG’s product offerings and is anticipated to contribute significantly to the company’s revenue growth.
Furthermore, the total contract value over three years has been revised upward, indicating strong demand and potential for future renewals. The upfront payment from Petronas will allow DUG to cover the necessary capital expenditures without impacting its working capital. Additionally, the contract win from a major player like Petronas, which previously engaged with a competitor, validates DUG’s technology as a leader in the market. These factors, combined with an attractive entry point at the current share price, support the Buy recommendation.
In another report released today, Wilsons also maintained a Buy rating on the stock with a A$2.86 price target.
Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DUG in relation to earlier this year.