Analysts at Cantor Fitzgerald raised their price target on Duos to $27 from $26 while maintaining an ‘Overweight’ rating, implying an upside potential of about 118% from current levels.
- Cantor added that the data center lease for 55 megawatts lifts Duos’ contracted capacity to 75 MW.
- Duos on Monday announced five-year hosting agreements with Axe Compute to provide AI data center capacity across multiple U.S. sites.
- Initial project readiness is targeted to begin in late 2026 and continue into early 2027, subject to construction, commissioning and performance testing.
Shares of Duos Technologies Inc. (DUOT) were headed for their best single-day gains in about 20 months in Tuesday morning’s trade, extending the rally from Monday after securing a $500 million data center lease.
According to TheFly, analysts at Cantor Fitzgerald raised their price target on Duos to $27 from $26 while maintaining an ‘Overweight’ rating, implying an upside potential of about 118% from current levels.
Duos shares were up nearly 21% in Tuesday morning’s trade. DUOT was among the top trending tickers on Stocktwits at the time of writing.
Cantor Sees A ‘Sharp’ Revenue Inflection For DUOT
Cantor said the newly secured lease should drive a “sharp” inflection in revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) for Duos by the first quarter (Q1) of 2027.
Cantor added that the data center lease for 55 megawatts lifts Duos’ contracted capacity to 75 MW.
According to Koyfin data, the average 12-month price target for Duos shares is $24.5, implying an upside potential of 97% from current levels. Of the two analysts covering the stock, both rate it ‘Buy.’
DUOT’s $500M AI Data Center Agreements
Duos on Monday announced five-year hosting agreements with Axe Compute Inc. (AGPU) covering 55 megawatts of AI data center capacity across multiple U.S. sites.
Initial project readiness is targeted to begin in late 2026 and continue into early 2027, subject to construction, commissioning and performance testing.
Duos CEO Doug Recker said the agreements “represent an important advancement of our AI infrastructure strategy” and demonstrate the company’s ability to turn development opportunities into long-term commercial relationships.
Axe Compute provides dedicated GPU capacity to enterprises and AI companies through its Axe Compute Access and Axe Compute Build offerings. The companies also signed non-binding term sheets that contemplate potential minority investments by Axe Compute in the project entities, with Duos expected to retain majority ownership.
DUOT’s Q2 Results Surpass Expectations
Duos also reported its second-quarter (Q2) results on Monday, with earnings per share (EPS) of $1.35 and revenue of $6.18 million, beating Wall Street expectations of $0.66 EPS on $4.9 million in revenue, according to Fiscal.ai data.
“In the second quarter and over the last several weeks, we have made tremendous progress both in operational execution and the fundamental repositioning of our business as a standalone AI infrastructure provider,” said Recker.
He added that Duos began seeing the early stages of the performance ramp it expects to build over the course of this year. The company also said it secured $111 million in contracted revenue during Q2 with an investment-grade hyperscaler to provide 10 MW of critical IT load capacity for five years at its Columbus, Georgia, data center campus.
What Retail Traders Think Of DUOT Stock
Retail sentiment on Stocktwits around Duos trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.
DUOT stock is up 11% year-to-date and 98% over the past 12 months. The Themes Generative Artificial Intelligence ETF (WISE) is down 8% over the past 12 months, while the iShares Micro-Cap ETF (IWC) is up 44%.
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