DUG TECHNOLOGY LIMITED (DUG)
Share Price Analysis and Chart

28/08/2026

1

Buy

$2.33

41.21%

DUG Technology reported a strong FY26 result, with record revenue up 38% y/y to US$86m and normalised EBITDA up 78% y/y, broadly in line with Ord Minnett's expectations.

Growth was broad-based across Services, Software and HPCaaS, while operating cash flow rose 275% to US$21m.

The disappointment was the $34m closing order book, well below the broker's $52m forecast and an important lead indicator for Services revenue.

Management attributes the shortfall to delays converting pipeline projects into awarded tenders and continues to expect Services growth in FY27, but Ord Minnett has adopted more cautious forecasts.

The broker retains Buy but cuts the target price to $2.33 from $3.15.

FORECAST
Ord Minnett forecasts a full year FY27 dividend of 0.00 cents and EPS of 13.10 cents.
Ord Minnett forecasts a full year FY28 dividend of 0.00 cents and EPS of 18.70 cents.

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

01/09/2026

1

Buy

$3.00

81.82%

Shaw and Partners maintains a Buy rating for Dug Technology with a $3.00 target price following an FY26 result featuring revenue of US$86.4m, which beat both consensus and the broker's own forecasts.

Normalised EBITDA reached US$27.4m, aligning with expectations and implying a 32% margin.

The analyst highlights that while the Services order book declined -35% to US$33.6m, management attributed this primarily to timing rather than a drop in demand and anticipates Services revenue growth in FY27.

The business mix continues shifting towards higher-margin operations, with Software/HPC and Multi-Client revenue now representing 26% of the total, up from 17% in the prior year.

The broker notes the stock currently trades on 12.8x FY28 enterprise value-to-cash EBITDA, suggesting current market pricing does not fully reflect the earnings leverage available as compute capacity utilisation increases.

FORECAST
Shaw and Partners forecasts a full year FY27 dividend of 0.00 cents and EPS of 9.20 cents.
Shaw and Partners forecasts a full year FY28 dividend of 0.00 cents and EPS of 8.30 cents.