
Digi (DGII) Stock Forecast & Price Target
Digi (DGII) Analyst Ratings
Bulls say
Digi International Inc. demonstrated strong financial growth with annual recurring revenue (ARR) of $152 million, reflecting a 31% year-over-year increase, alongside IoT Solutions sales reaching $32 million, which grew by 23% year-over-year, driven by robust performance in SmartSense and contributions from the Jolt acquisition. The company provided optimistic guidance for the first quarter of FY26, projecting sales between $114 million and $118 million, which indicates an 11.7% year-over-year increase at the midpoint, supported by consistent improvement in gross margins to 63.9%. The favorable financial trajectory, marked by stronger-than-expected results and contributions from recently acquired assets, positions Digi International for continued growth amidst an expanding IoT market.
Bears say
Digi International faces a challenging financial landscape, with recent module-oriented acquisitions yielding lower gross margins compared to the company’s historical performance of over 50%, potentially leading to a decline in market share and pricing pressure. The products nearing the end of their life cycles could further jeopardize sales and gross margins. Additionally, elevated inventory levels and supply chain disruptions have resulted in lower near-term free cash flow, compounded by external factors such as global tariffs affecting sales and margins.
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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