
Digi (DGII) Stock Forecast & Price Target
Digi (DGII) Analyst Ratings
Bulls say
Digi International Inc. has reported a substantial increase in annual recurring revenue (ARR) of $152 million, reflecting a 31% year-over-year growth, which underscores the company's solid position within the IoT connectivity market. Additionally, the IoT Solutions segment demonstrated notable performance with sales of $32 million, marking a 23% increase year-over-year, driven by the success of SmartSense and contributions from the recent Jolt acquisition. The company is also projecting first-quarter 2026 sales guidance in the range of $114-118 million, indicating an 11.7% year-over-year increase, supported by impressive gross margins and a favorable mix, further contributing to a positive outlook on its financial trajectory.
Bears say
Digi International is experiencing financial challenges primarily due to lower gross margins resulting from module-oriented acquisitions, which are generating income levels beneath previous highs. The company has also encountered significant supply chain headwinds, leading to elevated inventory levels and a negative impact on free cash flow, further complicating its financial stability. Furthermore, the introduction of global tariffs has placed additional pressure on sales and gross margins, contributing to a negative overall outlook.
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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