DUG Technology (ASX:DUG) recent contract wins, a robust order book, and improved earnings before interest, taxes, depreciation, and amortization (EBITDA) margins, signalled that it has returned to earnings growth, according to a Friday note from Euroz Hartleys.

The company reported a 104% quarter-on-quarter increase in EBITDA and a 30% increase in its EBITDA margin in the fiscal third quarter, due to lower growth spending and the absence of third-party compute costs, Jarden said.

Recent contract wins, including those linked to its MP-FWI (acoustic and elastic) technology, are a key driver for long-term growth, Jarden added.

Euro Hartleys believes that DUG's growth prospects are bolstered by the expanding order book, expected initial sales from emerging verticals, and the anticipated appointment of a permanent chief financial officer mid-year.

The firm also believes DUG's stock is trading "cheaply" but sees sales from emerging verticals like its cooling system DUGCool and its data-centre product DUGNomad, offering significant medium-term earnings upside.

Euroz Hartleys maintained DUG's speculative buy rating and raised its price target to AU$2.20 from AU$2.11.

Shares of the company fell 5% in recent Monday trade.