US stock futures flounder amid tech weakness, Fed caution
On Friday, BNP Paribas (OTC:BNPQY) Exane analysts reduced their price target for Samsara Inc (NYSE: NYSE:IOT) stock to $38 from $43, while keeping a Neutral rating. The decision follows challenges faced by Samsara customers in April, which resulted in extended sales cycles for certain deals. According to InvestingPro data, analyst targets for the stock currently range from $36.80 to $60.00, reflecting mixed sentiment in the market.
Despite these difficulties, Samsara reported a 32% growth in its first fiscal quarter top-line, excluding foreign exchange impacts. The company maintains impressive gross profit margins of 76.65%, according to InvestingPro data. However, analysts noted that the stock seems to reflect a slowdown in net new annual recurring revenue (NNARR) growth, which was 8% compared to 10% in the previous fiscal quarter.
This slowdown contributed to one of the smallest beats to annual recurring revenue (ARR) since Samsara’s public listing. Analysts also highlighted ongoing concerns related to macroeconomic factors and tariffs affecting Samsara’s end markets.
The revised price target and continued Neutral rating indicate cautious optimism, balancing recent strong performance with potential headwinds. Samsara’s management may need to address these challenges to sustain growth and investor confidence.
In other recent news, Samsara Inc. reported its first-quarter fiscal 2026 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.11, doubling the forecasted $0.05. The company’s revenue reached $367 million, reflecting a 31% year-over-year growth, slightly exceeding the projected $351.56 million. Despite these positive results, the company experienced a 13% decline in stock value after hours, attributed to a slowdown in sequential net new annual recurring revenue (NNARR) growth. Goldman Sachs maintained its Buy rating on Samsara, with a price target of $46, citing strong customer demand and international performance as growth drivers. Wolfe Research also raised its price target to $45, emphasizing Samsara’s competitive positioning and conservative fiscal year guidance. RBC Capital reiterated its Outperform rating, maintaining a price target of $54, and noted the company’s robust revenue growth despite deal elongations caused by tariff impacts. These developments highlight Samsara’s solid execution and continued momentum in emerging product categories, even amid macroeconomic challenges.
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