DUG Technology (ASX:DUG) first commercial deployment of its DUG Nomad product is a "major milestone" and the commencement of a new revenue stream for the company, said Euroz Hartleys in a Tuesday note.
On Monday, the company reported the first commercial deployment of its DUG Nomad product with BRB International, a Petronas subsidiary and global specialist in silicones, lube oil additives, and specialty chemicals.
The research firm assumes the new segment is earnings before interest, tax, depreciation, and amortization margin accretive of more than 35%, and conservatively expects one new lease per fiscal half-year period from the second half of 2026 through to 2029.
Euroz Hartleys maintained its speculative buy rating on DUG Technology and raised its price target to AU$2.24 from AU$2.20.
The company's shares fell 4% on market close.
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