Analyst Keith Weiss of Morgan Stanley maintained a Hold rating on Samsara, retaining the price target of $53.00.
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Keith Weiss has given his Hold rating due to a combination of factors that highlight both strengths and challenges for Samsara. The company has demonstrated impressive growth with two consecutive quarters of accelerating Net New Annual Recurring Revenue (NNARR), driven by strong performance in acquiring large customers and the success of emerging solutions. This growth is complemented by improved free cash flow margins, positioning Samsara as a notable growth story in its sector.
However, despite these positive developments, the stock appears to be fairly valued at its current price, trading at 55 times the estimated free cash flow for the fiscal year 2027. This valuation suggests that the market has already priced in much of the company’s growth potential, leading to a more cautious outlook. As a result, while Samsara’s operational performance is strong, the current stock price reflects these achievements, justifying a Hold rating from Keith Weiss.
In another report released yesterday, J.P. Morgan also maintained a Hold rating on the stock with a $48.00 price target.
Based on the recent corporate insider activity of 201 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.