Canaccord Genuity Maintains Their Buy Rating on Digi International Inc (DGII)

By Jason Carr

Canaccord Genuity analyst Michael Walkley maintained a Buy rating on Digi International Inc (DGIIResearch Report) today and set a price target of $21. The company’s shares opened today at $11.73.

Walkley noted:

“We note the F2019 guidance includes $2M in additional earnouts anticipated for the Accelerated Concepts acquisition or else guidance would have been basically inline with our estimates. Management had a strong year of execution in F2018, and we believe Digi is positioned for improving organic growth and expanding margins in F2019 and F2020. Key milestones achieved during Q4 include achieving a sub-1000 SKU count (down from over 5,000 a couple years ago), SmartSense sites increasing to 54K, and a largely complete manufacturing transition. We maintain our belief Digi will post strong double-digit growth for its IoT solutions business over the next several years and achieve its 3-5 year target of $50M to $100M annual recurring revenue.”

According to, Walkley is a 5-star analyst with an average return of 12.4% and a 58.8% success rate. Walkley covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Adesto Technologies Corp, and Sierra Wireless Inc.

Currently, the analyst consensus on Digi International Inc is a Strong Buy with an average price target of $17.83.

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Based on Digi International Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $2.62 million. In comparison, last year the company had a net profit of $4.34 million.

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Digi International, Inc. engages in the provision of business and mission-critical and Internet of Things (IoT) connectivity products and services. It operates through M2M and Solutions segments. The M2M segment consists primarily of distinct communications products and communication product development services.