
Digi (DGII) Stock Forecast & Price Target
Digi (DGII) Analyst Ratings
Bulls say
Digi International Inc. reported a 9% increase in Total Annual Recurring Revenue (ARR) to $116 million, driven by a re-acceleration in its IoT Products and Services segment, alongside consistent growth in its IoT Solutions segment. The company's gross profit margin (GPM) improved due to a favorable shift towards software offerings and successful wins in the datacenter refresh market with OpenGear, contributing to an optimistic outlook on sustaining GPM above 60%. Additionally, management’s commitment to enhancing ARR through multi-year agreements and their reaffirmation of ambitious 2028 targets underscore a strong long-term growth potential.
Bears say
Digi International Inc. reported a year-over-year sales decline of 6%, totaling $105.1 million, with growth concerns stemming from the company's lower expected revenue compared to peers, compounded by one-time revenue declines and operating expense plans that could impact market share and pricing strategies. The company's significant reliance on older hardware nearing the end of its product life cycles raises concerns about future sales and gross margins, exacerbated by a mid-single-digit decline in total billings. Furthermore, the company's dependence on single-source suppliers introduces additional risks related to pricing and operational failures, creating an uncertain outlook for both short-term estimates and long-term growth potential.
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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