Analysts Have Been Trimming Their DUG Technology Ltd (ASX:DUG) Price Target After Its Latest Report

DUG Technology Ltd (ASX:DUG) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. Revenues missed expectations somewhat, coming in at US$63m, but statutory earnings fell catastrophically short, with a loss of US$0.03 some 21% larger than what the analysts had predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, DUG Technology's six analysts are now forecasting revenues of US$78.6m in 2026. This would be a sizeable 26% improvement in revenue compared to the last 12 months. DUG Technology is also expected to turn profitable, with statutory earnings of US$0.039 per share. In the lead-up to this report, the analysts had been modelling revenues of US$79.3m and earnings per share (EPS) of US$0.035 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for DUG Technology

The consensus price target fell 7.4% to AU$2.17, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values DUG Technology at AU$2.46 per share, while the most bearish prices it at AU$1.73. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting DUG Technology's growth to accelerate, with the forecast 26% annualised growth to the end of 2026 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect DUG Technology to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards DUG Technology following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple DUG Technology analysts - going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for DUG Technology that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.