
Digi (DGII) Stock Forecast & Price Target
Digi (DGII) Analyst Ratings
Bulls say
Digi International Inc. reported a robust annual recurring revenue (ARR) of $152 million, reflecting a significant year-over-year increase of 31%, driven by strong performance in its IoT Products and Services segment. The company also experienced a 23% year-over-year increase in IoT Solutions sales, which amounted to $32 million, bolstered by the success of its Smartsense offerings and the contributions from the recently acquired Jolt. Additionally, the first quarter of fiscal year 2026 is projected to generate sales guidance of $114-118 million, showcasing an 11.7% year-over-year growth at the midpoint, alongside improved gross margins that enhanced the overall financial outlook for the company.
Bears say
Digi International Inc. is facing significant challenges, particularly due to its module-oriented acquisitions that yield lower gross margins compared to its historical averages, which may lead to lost market share and reduced pricing power. The company’s reliance on aging hardware products and external wireless communication networks raises concerns about future sales and gross margins, especially given the elevated inventory levels resulting from ongoing supply chain headwinds. Furthermore, the impact of global tariffs and potential integration issues related to new acquisitions in the services sector could further hinder short-term growth and operational effectiveness.
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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