How are energy investors positioned?
On Monday, TD Cowen maintained a positive stance on Samsara Inc (NYSE:IOT), reiterating a Buy rating and a $56.00 price target. Currently trading at $47.48, the stock sits within analysts’ target range of $44-$64. The firm’s analyst anticipates that Samsara will continue its growth execution, although acknowledges a high bar set for the new fiscal year guidance. Samsara is scheduled to report its fourth quarter earnings on March 6, with expectations of a revenue beat and a fiscal year 2026 growth guide that aligns with current Street projections. According to InvestingPro, 14 analysts have recently revised their earnings estimates upward for the upcoming period.
TD Cowen’s analysis suggests that Samsara has consistently performed well with its growth initiatives, which include gaining traction in the up-market, international expansion, and broadening its industry verticals. This is evidenced by the company’s impressive 39.11% revenue growth over the last twelve months, maintaining a robust gross profit margin of 75.66%. The analyst expects these trends to persist into the fourth quarter, supported by robust end-markets. Despite the stock trading at approximately 14 times its estimated sales for the calendar year 2026, which sets a high benchmark, the firm remains optimistic about the company’s fundamental prospects.
The firm cites Samsara’s successful track record of navigating global supply chain challenges and inflationary pressures as a basis for their confidence. Moreover, the analyst believes that Samsara’s medium-term growth and margin framework will lead to another solid performance, paired with a fiscal year 2026 guidance that meets expectations. However, the analyst also notes the elevated valuation and potential uncertainties in end-markets due to tariff and trade war dynamics.
In summary, TD Cowen stands by its Buy rating and $56 price target for Samsara stock, which equates to roughly 16.5 times the estimated sales for the calendar year 2026. With a market capitalization of $26.76 billion, Samsara currently trades at elevated multiples, though InvestingPro analysis suggests the company is expected to achieve profitability this year. The firm looks forward to the upcoming earnings report and the company’s guidance for the future, while recognizing the challenges and high expectations already priced into the stock. Discover more detailed insights and 6 additional ProTips for Samsara in the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Samsara Inc. announced an integration with Stellantis (NYSE:STLA)’ Mobilisights platform, enabling European businesses to access vehicle telematics data without additional hardware. This development aims to improve fleet management by allowing operators to connect vehicles to Samsara’s platform using just the Vehicle Identification Number, offering insights into GPS location, mileage, and fuel levels. Meanwhile, Raymond (NSE:RYMD) James initiated coverage of Samsara with a Market Perform rating, highlighting the company’s leadership and potential for long-term growth but noting that the current stock price reflects these strengths. Berenberg also started coverage with a Hold rating and a $57 price target, acknowledging Samsara’s market potential but expressing reservations about immediate stock catalysts. Additionally, Samsara’s CEO and CTO have initiated pre-arranged stock trading plans for their family trusts, set to begin in January 2025 and running through the end of the year. These plans, designed to minimize market impact, will adhere to volume limitations under Rule 144 of the Securities Act. Samsara’s recent developments reflect its ongoing efforts to enhance operational capabilities and expand its market presence.
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