Gold prices higher, remain near record highs on rate cut bets
Investing.com - Morgan Stanley has raised its price target on Samsara Inc (NYSE:IOT) to $53.00 from $50.00 while maintaining an Equalweight rating on the stock. The company, currently valued at $24 billion, has seen its stock surge over 16% in the past week, according to InvestingPro data.
The price target adjustment follows Samsara’s better-than-expected performance in its most recent quarter, where the company demonstrated accelerated growth despite market concerns about potential slowdowns. The company maintains impressive gross margins of 77% and has achieved 30% year-over-year revenue growth.
According to Morgan Stanley, Samsara’s net new annual recurring revenue (NNARR) year-over-year growth accelerated to 19%, which significantly outperformed market expectations.
The investment bank noted that while questions remain about the sustainability of this growth trajectory, the second-quarter results demonstrate Samsara’s strong positioning to address its large total addressable market (TAM).
Morgan Stanley highlighted Samsara’s expanding product portfolio as a key factor in the company’s ability to capitalize on market opportunities going forward.
In other recent news, Samsara Inc reported strong financial performance, with annual recurring revenue (ARR) growing by 29.8% year-over-year to $1.640 billion, surpassing consensus estimates of $1.624 billion. This impressive growth in ARR has led several analyst firms to raise their price targets for the company. Truist Securities increased its price target to $39, maintaining a Hold rating, while Piper Sandler raised its target to $48, citing re-acceleration in Net New Annual Recurring Revenue (NNARR) that exceeded expectations. William Blair reiterated an Outperform rating, attributing this to accelerated net new ARR momentum and sustained operating performance. TD Cowen also raised its price target to $49, highlighting Samsara’s "impressive rebound quarter" as previously delayed deals closed. RBC Capital increased its price target to $46, noting the company’s strong second-quarter results, which included 30% ARR growth and 31% revenue growth. These developments reflect a positive outlook from analysts following Samsara’s recent performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.