Roth Capital Raises Digi International (NASDAQ: DGII) Price Target Amid Strong Financial Performance

• Roth Capital increased its price target for Digi International (NASDAQ: DGII) to $90, suggesting an 8.42% potential upside for the IoT stock.
• The company reported record revenue of $139 million and Adjusted EBITDA of $40 million, significantly exceeding analyst estimates.
• Digi International demonstrated strong profitability with $0.75 per share in quarterly earnings and Annual Recurring Revenue (ARR) reaching a record $191 million.

On August 6, 2026, an analyst from Roth Capital increased the price target for Digi International (NASDAQ: DGII) to $90. Digi International is a global provider of Internet of Things (IoT) products and services. The new target represents a potential 8.42% upside from its trading price of $83.01 at the time.

The analyst's positive outlook is supported by the company's strong financial performance. Digi International reported record revenue of $139 million for its third fiscal quarter, a 29% increase from the previous year. This figure also exceeded the consensus estimate of $138.67 million by 4.57%, as highlighted by Zacks.

The company's profitability also shows significant improvement. It announced quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.67. This is a substantial increase from the $0.53 per share reported in the same quarter a year ago. Adjusted EBITDA, a key measure of profitability, reached a record $40 million.

Digi International demonstrates strong, predictable income streams. Its non-GAAP Annual Recurring Revenue (ARR) grew to a record $191 million. ARR represents the predictable revenue a company expects to receive from its customers over a year. Additionally, cash flow from operations totaled $33 million, a 38% year-over-year increase.

Following the strong results, Digi International raised its financial outlook for the fourth quarter. The company now forecasts revenue between $138 million and $142 million. The market reacted positively to the news, with the stock price climbing 14.10% to $83.01 and reaching a new 52-week high of $83.49.