Digi International Price Target Raised to $70 After Record $131M Revenue
Digi International's price target rose to $70 from $54 after quarterly EPS of $0.62, beating estimates by $0.04. The company posted record quarterly revenue of $131 million (up 25% year-over-year) and ARR of $184 million, supported by $41 million in operating cash flow.
1. Analyst Price Target Increase
In early May 2026, Roth Capital raised its 12-month price target for Digi International to $70 from $54, citing the company’s robust quarterly results and strengthened financial outlook.
2. Earnings Beat and Growth
Digi International reported quarterly earnings per share of $0.62, exceeding consensus estimates by $0.04 and up from $0.51 in the same quarter last year, marking its fourth consecutive beat.
3. Record Revenue and ARR
The company achieved record quarterly revenue of $131 million, a 25% increase year-over-year and 3.7% above consensus, while annualized recurring revenue climbed to a record $184 million.
4. Operating Cash Flow Strength
Digi International generated a record $41 million in operating cash flow, underlining strong cash conversion and financial flexibility from its core IoT connectivity business.