Digi International Inc. (DGII), a Minnesota-based provider of Internet of Things (IoT) connectivity products — including cellular routers, console servers, and embedded modules — has seen its shares more than double from their 52-week low of $34.41. With the stock recently trading near $74, investors are asking whether it can climb to the $85 stock price target that now sits near the center of Wall Street's expectations.
The $85 central target is derived from five individual analyst price targets with firm attribution and recent dates, not a headline consensus figure. Collectively they average $85.40, which rounds to $85. The low-to-high range spans $76 to $90.
Among the more bullish views, Roth MKM (analyst Scott Searle) holds a Buy rating with a $90 target, and Craig-Hallum reiterated a Buy with a $90 target. B. Riley raised its target to $86 from $78 while maintaining a Buy, and Stephens (analyst Tommy Moll) lifted its target to $85 from $75 with an Overweight rating. The most cautious view comes from Piper Sandler (analyst James Fish), which raised its target to $76 from $63 but kept a Neutral rating, citing valuation after strong execution.
These upgrades followed a fiscal first-quarter 2026 report that delivered roughly 18% year-over-year revenue growth and record quarterly revenue, with management raising guidance by more than the upside. The divergence between the $90 bulls and the $76 hold reflects a genuine debate over how much premium the shares deserve for their recurring-revenue transformation.
With shares recently trading near $74 and a market capitalization around $2.78 billion, the move to $85 implies upside of roughly 15%. In percentage terms that is a substantial but not extreme move, especially for a stock that has already shown strong momentum over the past year.
The path toward the target would most plausibly run through continued execution on Digi's transition to subscription and recurring revenue solutions, including higher attach rates on IoT devices such as cellular routers and infrastructure-management products. Analysts project earnings per share (EPS) of about $2.69 for fiscal 2026 and $3.13 the following year, implying continued double-digit growth that would need to be delivered to support a higher valuation. Note that the stock trades at a notable P/E (price-to-earnings) premium relative to its trailing results, meaning much of the upside case depends on forward earnings growth materializing.
The 52-week range of $34.41 to $86.84 provides meaningful context. The $86.84 prior high is a key resistance level that lies slightly above the $85 target, while the recent trading zone near $73–$76 corresponds closely to the lowest analyst target of $76, which may serve as a near-term support area. A sustained break above the prior high would put the $90 bull-case targets in view, whereas a failure to hold current levels could reopen the path toward the lower end of the recent range.
Analyst price targets typically reflect a 12-month research horizon, and the five targets used here carry recent dates from mid-to-late 2026, implying they are current views. The most important near-term catalyst is Digi's next earnings report, scheduled for November 11, 2026, where investors will watch revenue growth, recurring-revenue mix, margins, and any revision to full-year guidance. Subsequent analyst target changes, macroeconomic data affecting enterprise technology spending, and developments in IoT and AI-driven network demand will also shape the debate over whether $85 is achievable.
For traders tracking whether DGII can sustain momentum toward its price target, Tickeron's AI Daily Buy/Sell Signals offer a data-driven complement to fundamental research. The tool uses artificial intelligence to continuously monitor thousands of stocks and ETFs, generating Buy, Sell, or Hold signals based on changing market conditions, technical behavior, and AI-driven analysis. Traders can use these signals to discover opportunities, monitor existing positions, and identify shifting trends more efficiently than manual screening alone. Consider exploring the signals alongside your own analysis of the DGII market outlook.
The $85 central target for Digi International is the rounded mean of five analyst price targets averaging $85.40, spanning $76 to $90. From a recent price near $74, reaching that level would require roughly a 15% advance — substantial, but consistent with the stock's demonstrated volatility and prior trading history near $86.84. The case is supported by double-digit revenue growth, a favorable recurring-revenue mix shift, and a cluster of recent target increases. The principal obstacles are a demanding valuation, the need to keep beating a raised guidance bar, and potential pressure on hardware demand. With four bullish ratings and one hold, the analyst community leans constructive but is far from unanimous, making the November earnings report and subsequent revisions the key signposts to watch.
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
A.I.dvisor indicates that over the last year, DGII has been loosely correlated with HLIT. These tickers have moved in lockstep 45% of the time. This A.I.-generated data suggests there is some statistical probability that if DGII jumps, then HLIT could also see price increases.
| Ticker / NAME | Correlation To DGII | 1D Price Change % | ||
|---|---|---|---|---|
| DGII | 100% | +2.95% | ||
| HLIT - DGII | 45% Loosely correlated | -0.40% | ||
| HPE - DGII | 40% Loosely correlated | +2.20% | ||
| BDC - DGII | 39% Loosely correlated | +0.67% | ||
| ITRN - DGII | 39% Loosely correlated | +0.30% | ||
| TSAT - DGII | 39% Loosely correlated | +5.32% | ||
More | ||||