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Investing.com - Goldman Sachs has reiterated its Buy rating and $46.00 price target on Samsara Inc (NYSE:IOT) following the company’s Beyond 2025 event and Analyst Day. According to InvestingPro data, analyst targets for the stock range from $36.80 to $60.00, with the company currently trading above its Fair Value. The stock has delivered an impressive 35% return over the past year, despite showing high price volatility.
The investment bank highlighted Samsara’s evolution from a primarily vehicle-based solutions provider to an AI-first, multi-product operations platform, with new offerings including Route Planning, Maintenance, and Wearables. Goldman Sachs expressed confidence in Samsara’s potential to sustain over 30% ARR growth, supported by a vast $137 billion connected operations market in 2024. This confidence appears well-founded, as InvestingPro data shows the company achieved 31.7% revenue growth in the last twelve months, maintaining an impressive 76.7% gross profit margin.
Goldman Sachs noted that calendar year 2025 is expected to mark Samsara’s highest number of product releases compared to previous years, which should support continued growth. The firm pointed to early success with Asset Tags, which have already been deployed in over 100,000 instances and exceeded $10 million in ARR, demonstrating Samsara’s ability to monetize new product opportunities. InvestingPro analysis reveals 15 analysts have revised their earnings upwards for the upcoming period, with expectations of profitability this year.
International expansion represents another growth opportunity for Samsara, according to Goldman Sachs, with telematics penetration at 30% in Europe compared to 50% in the U.S., and video-based safety adoption at less than 5% in Europe versus 10% in the U.S. The firm believes Samsara is well-positioned to digitize and consolidate physical operations workflows in international markets.
Goldman Sachs also emphasized Samsara’s margin expansion potential, noting it is one of the fastest-growing software companies to surpass $1.5 billion ARR and is positioned to benefit from organic leverage as renewals become a larger proportion of the overall mix.
In other recent news, Samsara Inc. reported a 32% growth in its first fiscal quarter revenue, excluding foreign exchange impacts, despite challenges that extended sales cycles for some deals. This growth was noted amid a slowdown in net new annual recurring revenue growth, which decreased from 10% to 8% compared to the previous fiscal quarter. In product development, Samsara introduced over a dozen new AI-powered solutions aimed at enhancing safety and efficiency in physical operations, including AI Multicam and Weather Intelligence features. The company has also launched a new wearable device for frontline workers and invested over $1 billion in research and development to date.
BNP Paribas (OTC:BNPQY) Exane recently lowered its price target for Samsara to $38 from $43, citing sales concerns, while maintaining a Neutral rating. Meanwhile, Piper Sandler maintained an Overweight rating and a $53 price target, identifying a $5 billion market opportunity in asset tags. Evercore ISI reiterated an In Line rating with a $45 target, highlighting Samsara’s product innovation and customer service. William Blair kept its outperform rating, emphasizing Samsara’s market opportunity in connected operations digitization and high customer satisfaction.
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