Digi International price target raised to $30 from $26 at Piper Sandler

Piper Sandler raised the firm’s price target on Digi International (DGII) to $30 from $26 and keeps a Neutral rating on the shares. The firm notes top-line results were relatively inline, though a greater shift towards recurring sources occurred in the quarter, and management continues to show operational excellence with improving GPM and controlled opex driving EBITDA guide for the year +5% higher and still looking prudently conservative on that end. However, offsetting this is the expected implied Q4 sales ramp that looks a bit aggressive, with management having confidence around pipeline, Piper adds.