DUG Technology (ASX:DUG) reported a "solid" fiscal third-quarter update, providing confidence in the company's ability to meet consensus estimates for full-year results, Euroz Hartleys said in a May 1 note.

The company reported a 35% year-over-year increase in revenue to $22.4 million, as well as a significant increase in operating cash flow that drove a positive change from net debt at the end of the fiscal first half to net cash of $11.4 million as of the fiscal third quarter's close.

"DUG is at a clear earnings inflection with a best-in-class services offering," the equity research firm said, adding that the stock "looks attractive for a business forecast to deliver double-digit revenue growth, high double-digit [earnings before interest, taxes, depreciation, and amortization] growth, improved cash generation and profitability."

Additionally, the company's healthy cash balance, increased Tier-1 counterparties, and geographical spread offer it a compelling earnings growth re-rating opportunity.

Euroz Hartleys maintained its speculative buy recommendation on DUG Technology while putting its AU$3.50 per share price target under review.