Digi International

DGII · NASDAQ

$74.73+$1.51 (+2.06%)TodayMarket closed · Oct 20, 4:47 PM ET

Prev close $73.22

DGII analyst rating

BuyConsensus of 5 analysts over the last 12 months. 80% rate it a buy.

Strong buy0
Buy4
Hold1
Underperform0
Sell0

12-month price target · 7 analysts

Average $87.11 (+16.6% upside)

Low: $76.76
Now: $74.73
High: $94.50

Upgrades and downgrades

The latest rating actions, newest first

DGII analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Piper Sandler	Aug 6, 2026	Maintains	Neutral	$63.00 → $76.00	51%
Stephens & Co.	Aug 6, 2026	Maintains	Overweight	$75.00 → $85.00	72%
B. Riley Securities	Aug 6, 2026	Maintains	Buy	$78.00 → $86.00	44%
Stephens & Co.	May 12, 2026	Maintains	Overweight	$65.00 → $75.00	72%
Piper Sandler	May 7, 2026	Maintains	Neutral	$46.00 → $63.00	51%
Stephens & Co.	May 7, 2026	Maintains	Overweight	$55.00 → $65.00	72%
Piper Sandler	Jan 5, 2026	Maintains	Neutral	$41.00 → $46.00	51%
Stephens & Co.	Jan 2, 2026	Maintains	Overweight	$50.00 → $55.00	72%
B. Riley Securities	Nov 13, 2025	Maintains	Buy	$45.00 → $48.00	44%
Roth Capital	Nov 13, 2025	Maintains	Buy	$45.00 → $50.00	48%

The case for and against

Updated Oct 15, 2026

Bull case

Digi International is supported by a clear shift toward higher-quality recurring revenue, with ARR reaching $191 million, up 52% year over year, while F3Q26 revenue of $139 million and adjusted EPS of $0.75 both beat consensus. Its IoT Products & Services and IoT Solutions businesses are both accelerating, aided by Opengear data-center demand, Jolt-related growth, and improving operating leverage that lifted gross margin to 64.8% and adjusted EBITDA margin to 29.1%. The strong balance sheet, modest leverage of about 0.5x, and FY26 guidance for $529 million to $533 million in sales and $2.70 implied adjusted EPS reinforce the view that execution and demand trends remain favorable.

Bear case

Digi International is viewed cautiously because its business depends on limited-source suppliers, third-party wireless networks, and successful M&A integration, all of which can disrupt operations, customer relationships, and profitability if conditions worsen. Despite strong execution in the quarter and raised guidance, the company still faces substantial debt, covenant constraints, and intensifying competition, while certain hardware products are approaching end of life and may pressure sales and gross margins. Even with strength across both segments, including Jolt and Particle and some AI-related modernization benefits, the outlook remains negative because execution gains may be offset by structural risks and valuation concerns.

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