Piper Sandler analysts adjusted Digi International’s (NASDAQ:DGII) price target downward from $40.00 to $35.00 but maintained their Overweight rating on the stock. The company posted solid results for the March quarter, but the guidance for the June quarter fell slightly below expectations.

The analysts highlighted that Digi International is facing tighter budgets for its IT offerings, resulting in prolonged deal cycles. Despite this, management remains optimistic about the long-term demand for IT spending, even though the near-term outlook is uncertain.

The analysts expect Digi’s growth to pick up again starting in the December 2024 quarter. Although the company is experiencing a short-term slowdown, it is effectively managing its expenses and gross margin. As ARR (Annual Recurring Revenue) growth continues, the gross margins are expected to improve, leveraging the company’s model. Overall, the analysts remain confident in Digi’s execution and long-term business prospects.

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

× ¿Cómo puedo ayudarte?