Piper Jaffray Initiates Coverage On Digi International
Piper Jaffray is initiating coverage on shares of Digi International Inc. (NASDAQ: DGII) with an Overweight rating and a $19 price target.
In a note to clients, Piper Jaffray writes, "We are initiating coverage of DGII with an Overweight rating and $19 price target. We expect strong revenue growth and the potential for earnings upside to serve as positive catalysts for this largely overlooked energy efficiency/smart grid play trading at just 6x EV/FY12 EBITDA. We believe Digi's broad machine-to-machine (M2M) communication offering, targeted market vertical approach (smart grid, fleet tracking & monitoring, remote storage tank management), and consumer exposure will spur double digit revenue growth over the next 3 years, with the potential for EBITDA margins to return to peak levels of 18% from 12% currently."
Shares of DGII closed at $13.00 yesterday.
