Piper Sandler raises Samsara stock rating to overweight, PT to $50

Published 10/03/2025, 07:32
Piper Sandler raises Samsara stock rating to overweight, PT to $50

On Monday, Piper Sandler upgraded Samsara Inc (NYSE:IOT) stock from Neutral to Overweight, setting a price target of $50.00. The firm’s analysts pointed to a significant price reset in recent weeks as a key reason for the upgrade. Currently trading at $35.36, Samsara shares have experienced a steep 22.8% decline in just the past week and a 25.2% drop over the last six months. InvestingPro data reveals several additional insights about the stock’s technical position, with 12 exclusive ProTips available to subscribers.

Samsara, known for its internet of things (IoT) solutions, is recognized by Piper Sandler as a high-quality, durable company with the potential to maintain over 20% growth. The analysts underscored Samsara’s increasing market share in core fleet management, its progress in moving upmarket, and numerous opportunities for cross-selling its Video Safety & Equipment Monitoring/Asset Tags.

Despite the broader macro-environment presenting challenges to tech momentum, which could continue to impact Samsara’s stock, Piper Sandler believes there are several factors that now make the company’s shares more appealing. The analysts highlighted Samsara’s insulation from market volatility due to its operational budget focus rather than reliance on IT budgets. They also pointed to the potential for a larger renewal base in fiscal year 2026 and the anticipation of product announcements at the upcoming Beyond user conference in June, which has historically acted as a catalyst for the company.

Piper Sandler expressed confidence in the timing of the upgrade, suggesting that after a period of adjustment and lowered expectations, Samsara’s stock is now at a more attractive entry point. The firm anticipates sales and free cash flow (FCF) upside, making the risk-reward balance more favorable for investors.

In other recent news, Samsara Inc reported impressive fourth-quarter results, with a 36% adjusted growth and a revenue beat of approximately 3.5%. The company also noted a 33% increase in Annual Recurring Revenue (ARR) on a constant currency basis, showcasing strong momentum in its enterprise sector. Despite these positive outcomes, several analysts have adjusted their price targets for Samsara. TD Cowen reduced the price target to $51 but maintained a Buy rating, while RBC Capital Markets lowered theirs to $54, keeping an Outperform rating. Truist Securities decreased their target to $42, maintaining a Hold rating, citing potential challenges in the upcoming fiscal year. BMO Capital Markets also adjusted their target to $48, noting macroeconomic uncertainties affecting Samsara’s industrial customers. Goldman Sachs set the price target at $50, highlighting Samsara’s robust performance, especially in international growth and the public sector. These developments reflect a nuanced outlook on Samsara’s financial health and growth prospects.

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