DUG TECHNOLOGY LIMITED (DUG)
Share Price Analysis and Chart

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06/05/2025

1

Buy

$3.00

115.05%

DUG Technology reported strong momentum in its 3Q25 trading update, assesses Shaw and Partners, underpinned by the growing adoption of its Elastic MP-FWI technology.

The company secured $22.7m in service awards during the quarter, up from circa $10m in each of the first two quarters of FY25.

The broker highlights significant operating leverage despite ongoing international expansion. International growth continues across the Middle East, Brazil, and India, with a strong tender pipeline and strategic local partnerships, note the analysts. 

Gross operating cash flow was $3.3m, and the company ended March with $16.3m in cash and net debt of $6.6m.

The broker views DUG's share price as having likely bottomed, with multiple near-term catalysts such as DUG Nomad and DUG Cool, which are not yet factored into forecasts.

Shaw retains a Buy rating and $3.00 target price.

FORECAST
Shaw and Partners forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -2.40 cents.
Shaw and Partners forecasts a full year FY26 dividend of 0.00 cents and EPS of 5.00 cents.

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07/05/2025

1

Overweight

$1.96

40.50%

DUG Technology delivered a strong March quarter, in Wilsons's view, with revenue up by 12% quarter-on-quarter to US$16.5m and earnings (EBITDA) doubling to US$5.3m.

Higher earnings reflect improved margins and accelerating traction in the company's Elastic MP-FWI offering, highlights the broker. Software was considered the standout segment, growing by 75% quarter-on-quarter.

The services order book also rose by 30% to US$42.7m and earnings margins improved to 32.1% from 17.6% in the prior quarter.

Wilsons raises its FY25-27 earnings forecasts by 7-11% and sees upside risk if pilot projects in the Middle East and Brazil convert into full awards.

Although FY25 revenue was revised down by -3% due to a slight miss, earnings margin expansion remains a key driver, explain the analysts.

Wilsons retains an Overweight rating and raises the target price to $1.96 from $1.83.

FORECAST
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -5.50 cents.
Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 2.10 cents.