Samsara Reports Strong Growth but Faces Valuation Test
Samsara Inc. (NYSE:IOT) reported strong fiscal Q2 results, including a 30% year-over-year revenue increase to $508.4 million and an adjusted EPS of $0.20 that beat expectations. The company also raised its full-year revenue guidance due to robust customer acquisition and public-sector wins. BNP Paribas Exane responded by raising Samsara’s price target from $40 to $55, maintaining an Outperform rating based on a 13x sales multiple for calendar year 2027. However, the firm notes that sustaining growth will be critical in justifying this higher valuation. Investor positioning has also shifted constructively as major funds like BAMCO Inc., Balyasny Asset Management, and Freestone Grove Partners increased their stakes significantly. Despite a modest decline in short interest to 7.59% of the public float, Samsara must now prove it can maintain its growth momentum amid tougher comparisons.
Tickers: $IOT
Topics: ARR growth BNP Paribas Exane IOT price target upgrade Samsara