Digi gets new coverage, with a positive rating
Digi International Inc., the Minnetonka-based maker of machine-to-machine networking hardware, was picked up for coverage by Stephens Inc. analyst Tim Quillin last week.
Quillin's initial rating is "overweight," meaning he expects the stock to outperform its peers. Key to the rating was faith in new CEO Ron Konezny, who succeeded former CEO Joe Dunsmore in December. Konezny is a former vice president of the global transportation and logistics division of Trimble Navigation Limited.
"[Konezny] has set the state for long-term profitable growth in the emerging M2M/IoT market," wrote Quillin. "[He] has made a series of strategic decisions that we believe have set the stage for profitable growth."
M2M/IoT are abbreviations for machine-to-machine and Internet of things. Digi, which has 30 years of experience making wired and wireless networking solutions, has ideal experience for developing even more solutions for the ever increasing IoT market, it says.
According to Quillin, Digi has well over one thousand custom design projects that should give the company an advantage in designing new products for the emerging machine-to-machine communications market.
With more than $90 million in cash on its balance sheet and no long-term debt, Quillin is expecting Digi to put money toward acquisitions that would further broaden its M2M solutions.
Patrick Kennedy