In a report released today, Derrick Wood from TD Cowen reiterated a Buy rating on Samsara (IOT – Research Report), with a price target of $45.00.
Derrick Wood has given his Buy rating due to a combination of factors illustrating Samsara’s robust performance and promising outlook. The company outperformed expectations with a 48% revenue growth in the fourth quarter, surpassing Wood’s estimate of 39%. This marks the fourth consecutive quarter of accelerating net new annual recurring revenue (NNARR) growth, highlighting Samsara’s effective execution. Wood’s confidence is further bolstered by the company’s impressive addition of high-value customers, as evidenced by a record number of new customers with contracts over $100,000, indicating strong upmarket traction.
Furthermore, Samsara’s financial guidance for fiscal year 2025 suggests continued growth, with projected revenues exceeding analyst expectations and an anticipated improvement in operating margins. This forward-looking optimism is supported by Samsara’s conservative yet de-risked guidance that takes into account potential macroeconomic challenges. The company’s diversified growth across both new and existing customers, significant deals, and international expansion, especially in non-transportation verticals like construction, demonstrate its broad market appeal and innovation in emerging products. These factors collectively justify Wood’s Buy rating and an increased price target for Samsara’s stock.
In another report released on February 26, RBC Capital also maintained a Buy rating on the stock with a $40.00 price target.
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Based on the recent corporate insider activity of 196 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IOT in relation to earlier this year.
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Samsara (IOT) Company Description:
Samsara Inc provides an end-to-end solution for operations: The solution connects physical operations data to Connected Operations Cloud, which consists of the Data Platform and Application.
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