UPDATE: Canaccord Genuity Initites Digi International at Hold on Legacy Business Drag

Canaccord Genuity initiated coverage on Digi International DGII with a Hold rating and a $9.34 price target. Canaccord Genuity commented, "With Digi's leading M2M hardware offerings and integrated iDigi device cloud application enablement platform (AEP), we believe Digi is well positioned to benefit from strong M2M industry growth trends longer term. However, due to our expectations for declining sales in Digi's legacy wired solutions business, we believe it could take until F2014 for Digi's investments in slower growing M2M verticals such as energy and medical and its Etherios acquisition to result in re-accelerating sales and earnings growth. While we believe Digi is potentially a compelling investment for longer-term investors, we initiate coverage with a HOLD rating and $10 price target. Digi International closed at $9.34 on Monday.