
Digi (DGII) Stock Forecast & Price Target
Digi (DGII) Analyst Ratings
Bulls say
Digi International reported an impressive annual recurring revenue (ARR) of $152 million, reflecting a 31% year-over-year increase, which underscores the company's robust growth trajectory. The IoT Solutions segment also demonstrated strong performance, with sales reaching $32 million, an increase of 23% year-over-year, driven by the success of SmartSense and contributions from recent acquisitions. Additionally, the company's financial outlook for the first quarter of fiscal 2026 indicates sales guidance of $114-118 million, representing an 11.7% year-over-year growth at the midpoint, further supported by favorable gross margins that significantly exceeded expectations.
Bears say
Digi International Inc. is experiencing challenges due to module-oriented acquisitions that yield lower gross margins compared to historical figures, contributing to stagnating net new connected devices. Additionally, elevated inventory levels resulting from ongoing supply chain disruptions, combined with the pressure of global tariffs, have negatively impacted both sales and gross margins, raising concerns about near-term financial performance. While the company has generated free cash flow to reduce debt, recent headwinds indicate potential difficulties in sustaining this momentum and achieving growth within its services business.
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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