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On Friday, RBC Capital analysts reiterated their Outperform rating for Samsara Inc (NYSE: NYSE:IOT) stock, maintaining a price target of $54.00. The analysts highlighted the company’s strong start to the year, noting a 31% constant currency annual recurring revenue growth and a 32% constant currency revenue growth. The company maintains impressive gross profit margins of 76.7% and has achieved revenue growth of 31.7% over the last twelve months. According to InvestingPro data, the stock currently appears overvalued based on its Fair Value analysis.
The analysts pointed out that Samsara experienced some deal elongation due to Liberation Day, as customers prioritized spending on vehicles and equipment ahead of tariffs. Despite this disruption, the results were considered better than initially perceived.
Samsara’s net new annual recurring revenue is anticipated to remain at least flat for the rest of the year. RBC Capital views this expectation as conservative and sees potential for upside, given the momentum building across the business.
The firm continues to be optimistic about Samsara’s performance and prospects, maintaining both the Outperform rating and the $54 price target.
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, compared to the forecast of $0.05. The company’s revenue reached $367 million, slightly exceeding the projected $351.56 million, marking a 31% year-over-year growth. Despite these strong results, the company experienced a 13% drop in stock value after hours, attributed to a slowdown in net new annual recurring revenue (NNARR) growth. Wolfe Research responded by raising Samsara’s stock price target to $45, maintaining an Outperform rating, while Goldman Sachs reaffirmed its Buy rating with a price target of $46. Analysts from both firms expressed confidence in Samsara’s ability to navigate macroeconomic challenges, highlighting strong pipeline generation and international growth, particularly in Europe. Samsara’s fiscal year 2026 guidance projects a 24% revenue growth, supported by a record non-GAAP gross margin of 79%. The company continues to focus on expanding its AI-driven solutions, which are seen as key drivers of future growth.
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