
Digi (DGII) Stock Forecast & Price Target
Digi (DGII) Analyst Ratings
Bulls say
Digi International Inc. reported a significant annual recurring revenue (ARR) of $152 million, marking a 31% year-over-year increase, alongside stronger-than-expected sales growth in its IoT Solutions segment, which reached $32 million, up 23% year-over-year. The company's positive near-term guidance for the first quarter of fiscal year 2026 anticipates sales between $114-118 million, reflecting an 11.7% year-over-year increase and robust adjusted EBITDA and EPS forecasts. Additionally, Digi International closed the fiscal year with fourth-quarter sales of $114.3 million, exceeding initial guidance and demonstrating strong performance driven by its core products and services, positioning the company favorably for future growth driven by increased demand in data centers and the ongoing transition from 4G to 5G technology.
Bears say
Digi International has encountered persistent supply chain challenges that have led to high inventory levels and decreased net free cash flow, which raise concerns about its near-term financial performance. Additionally, the company's module-oriented acquisitions are resulting in lower gross margins compared to previous averages, while lagging net new connected devices further exacerbate growth issues. Despite generating free cash flow for debt reduction, ongoing global tariffs and integration difficulties from recent acquisitions pose significant risks to the company’s projected growth in the IoT services sector.
This aggregate rating is based on analysts' research of Digi and is not a guaranteed prediction by Public.com or investment advice.
Digi (DGII) Analyst Forecast & Price Prediction
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