In a report released today, Daniel Jester from BMO Capital upgraded Samsara (IOT – Research Report) to a Buy, with a price target of $48.00.
Daniel Jester has given his Buy rating due to a combination of factors that highlight Samsara’s potential for growth and value. The recent significant drop in the stock price, over 40% in the past month, presents a more appealing risk/reward scenario for investors. This pullback has brought the stock’s valuation to a more attractive level, trading at approximately 12 times the next twelve months’ revenue, which is near the lower end of its historical range.
Moreover, Samsara’s strong return on investment-centric sales approach across diverse industries and its expanding AI capabilities, supported by robust data assets, are key growth drivers. The company is well-positioned in the telematics and vehicle safety sectors, which continue to offer substantial growth opportunities due to low market penetration. Despite macroeconomic uncertainties, Samsara’s ability to navigate challenging markets and maintain impressive growth underscores its resilience and potential for continued expansion.
In another report released yesterday, Piper Sandler also upgraded the stock to a Buy with a $50.00 price target.