Roth MKM ‘cautiously optimistic’ on Digi International in FY26

Roth MKM keeps a Buy rating and $38 price target on Digi International (DGII) following its non-deal roadshow with the management team. The firm comes away from the discussions “cautiously optimistic” that the company continues its transformation to a more recurring model, the analyst tells investors in a research note. Digi’s stable base of Product sales, growth in key recurring services, and the transition to more recurring products provide cautious optimism for FY25 and beyond, Roth MKM added.