Analyst Keith Weiss from Morgan Stanley maintained a Hold rating on Samsara and keeping the price target at $50.00.
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Keith Weiss has given his Hold rating due to a combination of factors that reflect both potential and caution. The recent underperformance of Samsara’s stock compared to its peers, alongside a deceleration in Net New ARR for five consecutive quarters, suggests a cautious approach. Despite this, there is optimism for the upcoming Q2 results, as deals postponed from Q1 could bolster the Net New ARR, potentially offering a short-term uplift to the stock.
However, looking beyond the immediate quarter, Weiss remains cautious due to the maturation of Samsara’s core fleet management and safety offerings, which have not yet been complemented by new innovations. This lack of a significant ‘Act 2’ in their product lineup suggests that while there might be near-term strength, the medium-term outlook remains uncertain. Thus, the Hold rating reflects a balance between the potential short-term gains and the need for new growth drivers in the future.
Weiss covers the Technology sector, focusing on stocks such as Microsoft, Salesforce, and CoreWeave. According to TipRanks, Weiss has an average return of 12.8% and a 63.89% success rate on recommended stocks.
In another report released on August 25, Truist Financial also maintained a Hold rating on the stock with a $35.00 price target.