Habib Ur Rehman
1 min read
In This Article:
BNP Paribas Exane lowered its price target on Samsara (NYSE: IOT) to $38 from $43 on June 6, keeping its Neutral rating in place. The change follows signs of strain in the company’s April performance, where longer sales cycles affected deal flow.
Despite those headwinds, Samsara posted 32% revenue growth in its fiscal Q1, excluding currency effects. Still, net new ARR growth slowed to 8%, down from 10% the previous quarter, marking one of the narrowest beats to recurring revenue since the company went public.
A busy truckload depot, with trucks and goods packed up for their journeys.
BNP’s note also pointed to macro pressures and tariff-related risks in Samsara’s end markets as ongoing concerns.
Even as the company continues to grow, the reduced price target implies a more cautious view. Management will likely need to address these friction points to keep momentum intact and reassure investors.
While we acknowledge the potential of IOT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None.
