
Digi (DGII) Stock Forecast & Price Target
Digi (DGII) Analyst Ratings
Bulls say
Digi International Inc. demonstrated robust financial growth with an annual recurring revenue (ARR) of $152 million, marking a 31% year-over-year increase and providing a strong foundation for ongoing operational expansion. The IoT Solutions segment generated $32 million in sales, reflecting a 23% year-over-year increase, spurred by the performance of SmartSense and initial contributions from the Jolt acquisition. Additionally, the company anticipates continued growth with first-quarter fiscal year 2026 sales guidance between $114 million and $118 million, representing an 11.7% year-over-year increase at the midpoint, backed by improvements in gross margins and significant operational scale.
Bears say
Digi International's outlook appears negative due to lower gross margins associated with recent module-oriented acquisitions, which may lead to lost market share and declining pricing power. Additionally, certain hardware products nearing the end of their product life cycles could negatively impact sales and gross margins, compounded by supply chain challenges that have resulted in elevated inventory levels and constrained free cash flow. The dependence on third-party wireless communication networks and ongoing integration issues from acquisitions further exacerbate these risks, hindering growth potential in the near term.
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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