Morgan Stanley analyst Keith Weiss maintained a Hold rating on Samsara (IOT – Research Report) today and set a price target of $56.00.
Keith Weiss has given his Hold rating due to a combination of factors impacting Samsara’s stock. Despite the company’s ability to maintain a strong adjusted annual recurring revenue (ARR) growth of 34% in the fourth quarter, there are concerns about the broader market environment. Issues such as tariffs and the impact of DOGE, along with a smaller beat on ARR and a slowdown in net new ARR growth to 10% year-over-year, contribute to a cautious outlook.
Furthermore, while Samsara’s multi-product adoption is driving larger customer engagements and the company has shown resilience in challenging conditions, the forward guidance suggests a deceleration in revenue growth to 23-24%. This, combined with the stock trading at a high valuation of 14 times enterprise value to calendar year 2026 revenues, suggests limited upside potential in the near term. These factors collectively lead to the Hold rating, indicating that while the company has strong fundamentals, the current market conditions and valuation warrant a more cautious stance.
According to TipRanks, Weiss is a 5-star analyst with an average return of 14.8% and a 64.52% success rate. Weiss covers the Technology sector, focusing on stocks such as Salesforce, Intuit, and Microsoft.