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Subscription And Cloud Demand Will Secure Long-Term Market Value

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DGII
AnalystConsensusTarget
Not Invested
Published 15 Sep 2024

Update shared on27 Aug 2025

Fair value Increased 6.02%
Previous
AnalystConsensusTarget's Fair Value
US$40.50
10.4% undervalued intrinsic discount
10 Sep
US$36.30
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1Y
36.3%
7D
6.3%

Analysts have raised Digi International's price target to $40.50, citing the highly complementary Jolt acquisition, stronger product offerings alongside SmartSense, resilient quarterly results, and the potential for upside against conservative management guidance.


Analyst Commentary


  • Acquisition of Jolt, viewed as highly complementary, expected to enhance Digi International's product offering, particularly when combined with SmartSense.
  • The combined entity will deliver a more robust cold chain, logistics, and operational workflow solution compared to competitors.
  • Bullish analysts cite another solid quarterly performance by Digi International despite a complex operating environment.
  • Management's guidance remains conservative, signaling potential for upside surprises.
  • Company is demonstrating the ability to maintain healthy business results in challenging market conditions.

What's in the News


  • Digi International raised its profit outlook for fiscal 2025, maintaining flat revenue projections with ARR expected to grow 10%.
  • The company updated Q4 2025 revenue guidance to $108.5 million–$112.5 million following the Jolt acquisition, projecting approximately 1% revenue growth for the year.
  • Management emphasized continued prioritization of M&A as its main capital deployment strategy, citing strong free cash flow and a CapEx-light business model.
  • Digi launched Digi Axess—a mobile app with integrated VPN service—for secure, real-time industrial infrastructure management by field teams.
  • The company introduced Digi IX30-0EG4, an edge computing industrial IoT cellular router with Anterix Active designation, enhancing secure, scalable connectivity for mission-critical energy and utility applications.

Valuation Changes


Summary of Valuation Changes for Digi International

  • The Consensus Analyst Price Target has risen from $38.20 to $40.50.
  • The Consensus Revenue Growth forecasts for Digi International has significantly risen from 4.7% per annum to 5.7% per annum.
  • The Future P/E for Digi International has risen from 25.02x to 27.43x.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.