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Investing.com - Samsara Inc (NYSE:IOT) stock is indicated up 10% following William Blair’s reiteration of an Outperform rating on the enterprise SaaS company. The company, currently valued at $20.22 billion, has maintained impressive gross profit margins of 77%.
The stock movement is largely attributed to accelerated net new Annual Recurring Revenue (ARR) momentum and sustained operating performance, according to William Blair. With revenue growing at 30% year-over-year and analysts forecasting 24% growth next fiscal year, the company continues to show strong momentum. At an aftermarket price of $39, shares trade at 12 times William Blair’s 2026 revenue estimate.
William Blair notes this valuation represents a slight discount to fast-growth peers despite Samsara growing faster from a larger base with what they consider a likely more durable growth runway.
The research firm highlights that while other software businesses have experienced budget pressures and customer hesitancy, Samsara has largely sustained momentum throughout its business, which they attribute to the high ROI and mission-critical nature of Samsara products.
William Blair identifies several risks for Samsara including competition, valuation, multiclass ownership structure, and potential data breach concerns.
In other recent news, Samsara Inc. reported its fiscal Q2 2026 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.12, compared to the forecast of $0.07. The company achieved revenue of $391.5 million, exceeding the projected $372.22 million, marking a 30% year-over-year growth. Goldman Sachs reiterated its Buy rating on Samsara, raising the price target to $50, following the strong earnings report. The firm highlighted that revenue was 5% above consensus estimates and noted impressive growth in annual recurring revenue (ARR) and margins. RBC Capital also raised its price target to $46, citing the 30% ARR growth and improved macroeconomic conditions. TD Cowen increased its price target to $49, maintaining a Buy rating, attributing the decision to Samsara’s rebound after resolving tariff-related disruptions. Meanwhile, BMO Capital lowered its price target to $47 but maintained an Outperform rating, acknowledging the company’s strong performance in a challenging environment. These developments underscore the positive sentiment among analysts regarding Samsara’s recent performance.
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