
Digi (DGII) Stock Forecast & Price Target
Digi (DGII) Analyst Ratings
Bulls say
Digi International is a technology company that specializes in providing secure IoT connectivity solutions. In the most recent quarter, the company showed strong execution and raised its guidance, with revenue expected to grow 20%-22% and EBITDA growth of 23%-26%. The company's ARR also grew by 15%, indicating the success of its transition to a recurring revenue model. The datacenter segment has also been a strong driver of sales, and the company's outperformance in the quarter bodes well for its future growth potential. However, with the stock currently trading at a premium valuation, some investors may prefer to wait for a better entry point before investing.
Bears say
Digi International is facing potential supply chain and cost challenges due to increased demand from various industries such as datacenters and utilities, which may impact their profitability in the short-term. Additionally, there is a risk of slow growth in net-pull-in with a backlog building in their AI datacenters sector, indicating potential future strain on their revenues and operations. However, the company remains well-poised in terms of supply availability and allocation, with memory costs remaining a relatively small percentage of their overall costs.
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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