
Digi (DGII) Stock Forecast & Price Target
Digi (DGII) Analyst Ratings
Bulls say
Digi International Inc has demonstrated robust growth, with an annual recurring revenue (ARR) of $152 million, reflecting a 31% year-over-year increase, and significant contributions from both its IoT Products & Services and IoT Solutions segments. The company's fourth-quarter fiscal 2025 results showed revenues of $114.3 million, exceeding guidance and indicating an 8.8% year-over-year increase, supported by the recent Jolt acquisition and strong performance in SmartSense. Additionally, the favorable gross margins of 63.9%, combined with an optimistic first-quarter fiscal 2026 sales guidance of $114-118 million, positions the company for a promising financial outlook moving forward.
Bears say
Digi International's outlook is negatively impacted by the acquisition of lower-margin module-oriented businesses, leading to diminished gross margins compared to the historical average of over 50%. Additionally, ongoing supply chain challenges have resulted in elevated inventory levels, which, coupled with the pressures of global tariffs, have negatively influenced sales and margins, hindering near-term free cash flow. Furthermore, the potential for integration issues from recent acquisitions in the "cold chain" sector presents additional risks to growth forecasts within the services segment.
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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