Analysts Lift Samsara Targets, but Valuation Keeps Some Cautious

A dozen analysts raised their price targets on Samsara after the software and connected-device company reported 30% revenue growth for its fiscal second quarter. But several firms kept neutral or hold ratings, signaling that stronger results have not erased valuation concerns.

The quarter, ended August 1, brought in $508.4 million in revenue and $2.125 billion in annual recurring revenue, also up 30% from a year earlier. Samsara reported $0.03 in GAAP earnings per share, its fourth consecutive profitable quarter.

The target increases came September 4, the day after results. Wells Fargo set the highest target among the listed changes, at $58; BofA Securities, RBC Capital and KeyBanc set targets of $55. Piper Sandler raised its target to $46 but retained a Neutral rating.

Other cautious calls included Truist, which raised its target to $48 but kept Hold, and JPMorgan, which moved to $52 while maintaining Neutral. Morgan Stanley lifted its target to $49 and retained Equal-Weight. Higher targets, in other words, did not always mean analysts expected the stock to outperform.

Samsara’s large-customer base added to the growth case. Customers generating more than $100,000 in annual recurring revenue reached 3,605, up from 2,771 a year earlier, according to the company’s filing.

The company’s outlook also points to slower growth ahead. Samsara forecast $514 million to $516 million in third-quarter revenue, or 24% year-over-year growth, and 26% growth for fiscal 2027. Those forecasts compare with the 30% growth reported for the latest quarter.

Cash generation is another point to watch. On its earnings call, management said it expects fiscal 2027 free-cash-flow margin to be about one percentage point below fiscal 2026, citing device needs, inventory and supply-chain costs. The next results will show whether customer growth can hold up as revenue growth cools and investment needs rise.