Samsara stock poised for growth as Piper Sandler sees $5B asset tag market

Published 18/06/2025, 15:46
Samsara stock poised for growth as Piper Sandler sees $5B asset tag market

Piper Sandler maintained its Overweight rating and $53.00 price target on Samsara Inc (NYSE:IOT) ahead of the company’s Beyond 2025 event and investor day scheduled for next week. The firm identified asset tags as a significant growth opportunity for the Internet of Things company, which currently commands a $21.76 billion market cap. According to InvestingPro data, the stock appears overvalued at current levels, though analyst targets range from $36.80 to $60.00, reflecting mixed sentiment on Wall Street.

The research firm estimates at least a $5 billion global market opportunity for Samsara’s asset tags, based on its Fleet Market Model with a conservative attachment rate of one asset per truck. Piper Sandler noted this figure could potentially multiply when viewed in the context of the broader RFID market. The company’s impressive 76.65% gross profit margin and strong revenue growth of 31.72% over the last twelve months suggest it’s well-positioned to capitalize on this opportunity.

Asset tags, which generated significant interest at last year’s Beyond event, are now seeing increased adoption as operational budgets have become available for their implementation. The upcoming Beyond 2025 event will focus on "Data-Driven Productivity" and is expected to feature additional product launches.

Piper Sandler highlighted Samsara as one of its top picks in the sector, suggesting the upcoming Beyond event could serve as a catalyst for the stock. The firm specifically mentioned that previous Beyond events have positively impacted Samsara’s stock performance, primarily due to new product introductions.

The research firm recommended investors buy Samsara shares following their recent pullback after first-quarter results, positioning ahead of the upcoming Beyond 2025 event and investor day.

In other recent news, Samsara Inc. reported its Q1 FY2026 earnings, surpassing expectations with an earnings per share (EPS) of $0.11, doubling the forecasted $0.05. The company also achieved a revenue of $367 million, slightly above the expected $351.56 million, marking a 31% year-over-year growth. Despite these strong results, BNP Paribas (OTC:BNPQY) Exane analysts lowered their price target for Samsara to $38 from $43, citing extended sales cycles and a slowdown in net new annual recurring revenue (NNARR) growth. Meanwhile, Wolfe Research increased Samsara’s price target to $45, maintaining an Outperform rating, highlighting the company’s competitive positioning and its conservative fiscal year 2026 guidance. RBC Capital maintained an Outperform rating with a $54 price target, expressing optimism about Samsara’s potential for upside due to its strong start to the year. Goldman Sachs also reaffirmed its Buy rating with a $46 price target, emphasizing the company’s ability to manage macroeconomic challenges and achieve its fiscal year 2026 guidance of 24% growth. Samsara’s international performance, particularly in Europe, has shown strong growth, which is seen as a stable growth driver. These developments reflect a mix of cautious optimism and confidence among analysts regarding Samsara’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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