Digi International Inc. (DGII) designs and sells business- and mission-critical Internet of Things (IoT) connectivity products, services, and software—from cellular routers and embedded modules to its cloud-based Digi Remote Manager and SmartSense monitoring platform. After a powerful multi-year run that took shares from a 52-week low near $35 to a high of $86.84, investors are asking how much further the stock can climb. The question at hand: can DGII reach the $85 average analyst price target?
The $85 central target is my own calculation from five current, attributed targets issued around the company's August 2026 earnings report. The range runs from $76 to $90. Roth MKM raised its target to $90 from $70, Craig-Hallum to $90 from $75, B. Riley to $86 from $78, Stephens to $85 from $75, and Piper Sandler to $76 from $63 while keeping a Neutral rating. That produces a mean of $85.40, which I round to $85. Four of the five firms are Buy/Overweight, with only Piper Sandler remaining neutral—hence the widely cited "Strong Buy" consensus label.
The spread of $14 between the lowest and highest targets reflects genuine disagreement about how much premium the market should pay. Bullish analysts emphasize recurring revenue growth and operating leverage; the more cautious view worries that the stock's valuation already prices in sustained execution. This mean is a statistical summary of individual opinions, not a guarantee or an official published consensus.
Shares last closed near $67, giving a required gain of roughly 27% to reach $85—a substantial move. Notably, the stock fell sharply in after-hours trading to around $59 following its fiscal fourth-quarter report, despite results that beat expectations, underscoring how quickly sentiment can shift. From that lower level, the gap to $85 widens further.
Fundamentally, the company is growing fast: fiscal third-quarter revenue rose 29% year over year, and full-year fiscal 2026 revenue reached about $535 million versus $430 million the prior year. Management is guiding first-quarter fiscal 2027 adjusted EPS (earnings per share) to $0.71–$0.75 and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $39.5–$41.0 million. With a trailing P/E (price-to-earnings ratio) above 50, much of the path to $85 depends on earnings growth catching up to a valuation that already reflects optimism.
The 52-week high of $86.84 is the clearest resistance zone; it sits just below the $90 high end of the analyst range and near a round-number psychological level. A sustained move through that area would put the $85 target within reach. On the downside, the recent post-earnings dip toward the high-$50s is an important near-term support area to watch. The long-term trend remains upward—shares have roughly doubled over the past year—but the stock is highly volatile, with frequent double-digit percentage swings.
Analyst price targets typically reflect a roughly 12-month research horizon, though firms do not always state this explicitly. Investors should watch ARR growth and gross-margin trends in each quarterly report, the pace of integration for recent and pending acquisitions, and any updated guidance. Valuation multiples relative to earnings growth, along with broader conditions for small- and mid-cap technology stocks and interest-rate expectations, will also shape whether the stock can hold higher levels. Analyst revisions following the latest report will be a particularly important signal of whether the $85 target holds.
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The $85 central target—derived from five analyst targets ranging from $76 to $90—would require a gain of roughly 27% from the most recent close near $67, and considerably more from the post-earnings after-hours level near $59. The case for reaching it rests on a credible shift toward recurring revenue, expanding margins, strategic acquisitions, and sustained double-digit revenue growth. The case against it rests on a rich valuation, margin variability, supply-chain friction, and the market's demonstrated unwillingness to reward even an earnings beat. Whether the target is reached will depend less on any single quarter than on whether Digi can keep converting growth into expanding, higher-quality earnings. No outcome is guaranteed, and the wide analyst range itself signals genuine uncertainty.
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A.I.dvisor indicates that over the last year, DGII has been loosely correlated with HLIT. These tickers have moved in lockstep 50% 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% | -12.72% | ||
| HLIT - DGII | 50% Loosely correlated | +1.36% | ||
| NTGR - DGII | 48% Loosely correlated | N/A | ||
| VIAV - DGII | 45% Loosely correlated | -1.39% | ||
| VSAT - DGII | 41% Loosely correlated | -5.16% | ||
| TSAT - DGII | 40% Loosely correlated | -6.22% | ||
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