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    Is Digi (DGII) Quietly Repositioning Its IoT Connectivity Moat With SGP.32 eSIM Adoption?

    Simply Wall St·12/09/2025 17:23:11
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    • Digi International recently launched an SGP.32-compatible eSIM accessory, aligning its connected device portfolio with GSMA .32 standards to improve interoperability, lifecycle governance, and global SIM management for enterprise IoT deployments.
    • This move positions Digi to benefit from rapidly growing eSIM adoption and rising demand for orchestrated, multi-carrier IoT connectivity as enterprises scale distributed networks worldwide.
    • We’ll now explore how Digi’s SGP.32-compatible eSIM launch, enabling easier multi-carrier switching, may influence its broader investment narrative.

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    Digi International Investment Narrative Recap

    To own Digi International, you need to believe in its shift toward higher margin, recurring IoT connectivity and management services, on top of a still important hardware base. The new SGP.32-compatible eSIM strengthens this recurring connectivity story in the near term, but it does not fundamentally change the key catalyst of ARR growth or the main risks around regional demand softness and potential revenue stagnation.

    Among recent announcements, the October launch of the Digi XBee 3 Global LTE Cat 4 modem looks especially relevant, since it also tightens the link between hardware and managed connectivity through Digi Remote Manager. Paired with the new eSIM accessory, it reinforces Digi’s push to bundle devices, connectivity and lifecycle management, which matters if the company is to sustain double digit ARR growth despite modest overall revenue guidance.

    However, while the eSIM launch is encouraging, investors should also be aware that if the shift to software led and solution driven models stalls or meets customer resistance...

    Read the full narrative on Digi International (it's free!)

    Digi International's narrative projects $497.0 million revenue and $72.6 million earnings by 2028. This requires 5.7% yearly revenue growth and about a $29.9 million earnings increase from $42.7 million today.

    Uncover how Digi International's forecasts yield a $47.33 fair value, a 3% upside to its current price.

    Exploring Other Perspectives

    DGII 1-Year Stock Price Chart
    DGII 1-Year Stock Price Chart

    Simply Wall St Community members have published 3 fair value estimates for Digi, ranging from US$37.38 to US$70.75, reflecting very different expectations. As you compare those views, keep in mind that Digi’s push into eSIM based, multi carrier IoT connectivity is tightly linked to its reliance on recurring revenue growth to support profits and may influence how resilient the business proves across cycles.

    Explore 3 other fair value estimates on Digi International - why the stock might be worth 19% less than the current price!

    Build Your Own Digi International Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Digi International research is our analysis highlighting 3 key rewards that could impact your investment decision.
    • Our free Digi International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Digi International's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.