Goldman Sachs Initiates Buy Rating on Samsara with $36 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 30 2024
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Should l Buy IOT?
Source: Benzinga
Samsara Inc. shares fell 5.38% as the stock crossed below its 5-day SMA, reflecting ongoing market volatility.
Goldman Sachs has initiated research coverage on Samsara with a buy rating and a $36 price target, suggesting approximately 30% upside from current levels. Despite a 49% decline in Samsara's stock over the past year, Goldman believes the recent market volatility presents an attractive entry point for investors, particularly in an AI-driven environment. Analysts noted that while Samsara trades at a premium valuation, its robust free cash flow and expansion potential justify this valuation, with expectations of over 20% revenue growth further enhancing its investment appeal.
The initiation of a buy rating by Goldman Sachs indicates confidence in Samsara's growth prospects, which could attract investors looking for opportunities in the current market landscape.
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Analyst Views on IOT
Wall Street analysts forecast IOT stock price to rise
15 Analyst Rating
12 Buy
3 Hold
0 Sell
Strong Buy
Current: 26.160
Low
35.00
Averages
46.79
High
57.00
Current: 26.160
Low
35.00
Averages
46.79
High
57.00
About IOT
Samsara Inc. operates a Connected Operations Platform, which enables organizations that depend on physical operations to harness Internet of Things (IoT) data to develop actionable insights and improve their operations. The Company’s Connected Operations Platform includes its Data Platform, which ingests, aggregates, and enriches data from its IoT devices and an ecosystem of connected assets and third-party systems, and which has embedded capabilities for artificial intelligence (AI), workflows and analytics, alerts, application programming interface (API) connections, and data security and privacy; and applications for video-based safety, vehicle telematics, workforce apps, equipment monitoring, and site visibility. Its video-based safety enables customers to build a safety program and protect their teams with AI-enabled video. It serves organizations across construction, transportation and warehousing, field services, manufacturing, retail, logistics, and the public sector.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
IOT Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $27.00 put option is $3.10, and if an investor sells-to-open this contract, they commit to buying the stock at $27.00, effectively lowering their cost basis to $23.90, which is approximately a 2% discount from the current price of $27.44, making it attractive for those interested in IOT shares.
- Return Potential Analysis: Should the put option expire worthless, the investor would realize an 11.48% cash return, equating to an annualized yield of 46.07%, indicating a high potential return for this strategy in the current market environment.
- Call Option Returns: The $28.00 call option is also priced at $3.10, and if an investor buys IOT shares at $27.44 and sells this call, they could achieve a total return of 13.34% if the stock is called away at expiration, highlighting the attractiveness of this strategy.
- Risk and Reward Balance: With a 46% chance of the $28.00 call option expiring worthless, investors would retain both their shares and the premium collected, resulting in an additional return of 11.30%, or an annualized yield of 45.33%, providing a solid risk management strategy for investors.
See More
Goldman Sachs Sees Attractive Buying Opportunity in Samsara Stock
- Initiation of Buy Rating: Goldman Sachs has initiated research coverage on Samsara with a buy rating and a $36 price target, suggesting approximately 30% upside from current levels, reflecting confidence in the company's growth prospects.
- Stock Price Volatility Analysis: Despite a 49% decline in Samsara's stock over the past year and a 30% drop in the last three months, Goldman believes the recent market volatility presents an attractive entry point for investors, particularly in an AI-driven environment.
- Financial Performance and Growth Potential: Analysts noted that while Samsara trades at a premium valuation, its robust free cash flow and expansion potential justify this valuation, with expectations of over 20% revenue growth further enhancing its investment appeal.
- Technology Integration and Innovation Engine: Samsara is digitizing physical operations at scale by combining purpose-built edge hardware with a cloud platform, deeply integrating AI technologies that enhance customer ROI, showcasing its unique competitive advantage in the software industry.
See More
Latest Rating Changes on Wall Street
- Kingsoft Cloud Upgrade: Goldman Sachs upgrades Kingsoft Cloud (KC) from Neutral to Buy, citing the company's potential as a key beneficiary of Xiaomi's increased AI investments, which support its ambition to integrate AI with the physical world.
- BridgeBio Initiation: Stifel initiates coverage of BridgeBio Oncology Therapeutics (BBOT) with a Buy rating and a $23 target price, indicating that the biotech company has significant room for growth in its stock price.
- Energy Fuels Upgrade: Goldman Sachs upgrades Energy Fuels (UUUU) to Buy, highlighting its ownership of the highest-grade uranium deposit in the U.S. and the White Mesa Mill, which provides a competitive edge as the only facility capable of processing both uranium and rare earth elements.
- James Hardie Upgrade: JPMorgan upgrades James Hardie Industries to Overweight from Neutral, noting that the outlook for U.S. residential new construction is in the early stages of recovery, and the stock trades at a discount to their blended price target, making it an attractive investment opportunity.
See More
Samsara Highlights Coaching Role in Super Bowl Ad and Racing Partnership
- Super Bowl Ad Debut: Samsara will debut its Super Bowl LX commercial on February 8, 2026, centered on the idea that 'even champions need a coach,' emphasizing the importance of teamwork and continuous feedback, thereby enhancing brand recognition in the high-performance sector.
- Racing Partnership Continuation: Samsara announced a continued partnership with Richard Childress Racing and NASCAR champion Jesse Love, serving as the primary sponsor for the No. 2 Chevrolet in the 2026 O'Reilly Auto Parts Series, further solidifying its brand influence in the racing community.
- Data-Driven Performance Enhancement: Jesse Love highlighted that real-time data and coaching feedback are crucial for success in racing, and Samsara's platform is designed to help organizations improve performance ahead of high-stakes moments, showcasing the significance of its technology in practical applications.
- Fan Engagement Initiative: Through the 'Road to Talladega Contest,' Samsara encourages fan participation for a chance to win a VIP race day experience, enhancing interaction between the brand and consumers while boosting brand loyalty.
See More
Samsara Unveils Super Bowl Ad and Racing Partnership
- Super Bowl Ad Launch: Samsara will debut a Super Bowl commercial featuring NASCAR champion Jesse Love, emphasizing the importance of teamwork and elite performance, which is expected to enhance brand visibility and attract new customers.
- Ongoing Racing Partnership: Samsara continues its partnership with Richard Childress Racing and Jesse Love as a primary sponsor for the 2026 NASCAR O'Reilly Auto Parts Series, further solidifying its brand influence in the racing sector.
- Data-Driven Performance Enhancement: The ad conveys the idea that 'even champions need a coach,' highlighting the critical role of real-time feedback and data analysis in improving performance, reflecting the core value of the Samsara platform.
- Fan Engagement Activity: Through the 'Road to Talladega Contest,' Samsara encourages fans to participate and test their knowledge, enhancing interaction between the brand and consumers, thereby increasing customer loyalty.
See More
Samsara to Release Q4 FY2026 Financial Results on March 5, 2026
- Earnings Release Schedule: Samsara will announce its financial results for the fourth quarter of fiscal year 2026 on March 5, 2026, after U.S. market close, reflecting the company's ongoing growth in the Connected Operations platform sector.
- Live Webcast Discussion: The company will host a live webcast at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) on the same day to discuss the financial results, enhancing interaction and transparency with investors.
- Investor Relations Website: A press release will be available on Samsara's investor relations website prior to the earnings announcement, ensuring timely information access for investors and improving disclosure efficiency.
- Broad Customer Base: With tens of thousands of customers across North America and Europe in sectors like transportation, construction, and retail, Samsara demonstrates its significant role and impact in the global economy.
See More
IOT Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $27.00 put option is $3.10, and if an investor sells-to-open this contract, they commit to buying the stock at $27.00, effectively lowering their cost basis to $23.90, which is approximately a 2% discount from the current price of $27.44, making it attractive for those interested in IOT shares.
- Return Potential Analysis: Should the put option expire worthless, the investor would realize an 11.48% cash return, equating to an annualized yield of 46.07%, indicating a high potential return for this strategy in the current market environment.
- Call Option Returns: The $28.00 call option is also priced at $3.10, and if an investor buys IOT shares at $27.44 and sells this call, they could achieve a total return of 13.34% if the stock is called away at expiration, highlighting the attractiveness of this strategy.
- Risk and Reward Balance: With a 46% chance of the $28.00 call option expiring worthless, investors would retain both their shares and the premium collected, resulting in an additional return of 11.30%, or an annualized yield of 45.33%, providing a solid risk management strategy for investors.
See More
Goldman Sachs Sees Attractive Buying Opportunity in Samsara Stock
- Initiation of Buy Rating: Goldman Sachs has initiated research coverage on Samsara with a buy rating and a $36 price target, suggesting approximately 30% upside from current levels, reflecting confidence in the company's growth prospects.
- Stock Price Volatility Analysis: Despite a 49% decline in Samsara's stock over the past year and a 30% drop in the last three months, Goldman believes the recent market volatility presents an attractive entry point for investors, particularly in an AI-driven environment.
- Financial Performance and Growth Potential: Analysts noted that while Samsara trades at a premium valuation, its robust free cash flow and expansion potential justify this valuation, with expectations of over 20% revenue growth further enhancing its investment appeal.
- Technology Integration and Innovation Engine: Samsara is digitizing physical operations at scale by combining purpose-built edge hardware with a cloud platform, deeply integrating AI technologies that enhance customer ROI, showcasing its unique competitive advantage in the software industry.
See More
Latest Rating Changes on Wall Street
- Kingsoft Cloud Upgrade: Goldman Sachs upgrades Kingsoft Cloud (KC) from Neutral to Buy, citing the company's potential as a key beneficiary of Xiaomi's increased AI investments, which support its ambition to integrate AI with the physical world.
- BridgeBio Initiation: Stifel initiates coverage of BridgeBio Oncology Therapeutics (BBOT) with a Buy rating and a $23 target price, indicating that the biotech company has significant room for growth in its stock price.
- Energy Fuels Upgrade: Goldman Sachs upgrades Energy Fuels (UUUU) to Buy, highlighting its ownership of the highest-grade uranium deposit in the U.S. and the White Mesa Mill, which provides a competitive edge as the only facility capable of processing both uranium and rare earth elements.
- James Hardie Upgrade: JPMorgan upgrades James Hardie Industries to Overweight from Neutral, noting that the outlook for U.S. residential new construction is in the early stages of recovery, and the stock trades at a discount to their blended price target, making it an attractive investment opportunity.
See More
Samsara Highlights Coaching Role in Super Bowl Ad and Racing Partnership
- Super Bowl Ad Debut: Samsara will debut its Super Bowl LX commercial on February 8, 2026, centered on the idea that 'even champions need a coach,' emphasizing the importance of teamwork and continuous feedback, thereby enhancing brand recognition in the high-performance sector.
- Racing Partnership Continuation: Samsara announced a continued partnership with Richard Childress Racing and NASCAR champion Jesse Love, serving as the primary sponsor for the No. 2 Chevrolet in the 2026 O'Reilly Auto Parts Series, further solidifying its brand influence in the racing community.
- Data-Driven Performance Enhancement: Jesse Love highlighted that real-time data and coaching feedback are crucial for success in racing, and Samsara's platform is designed to help organizations improve performance ahead of high-stakes moments, showcasing the significance of its technology in practical applications.
- Fan Engagement Initiative: Through the 'Road to Talladega Contest,' Samsara encourages fan participation for a chance to win a VIP race day experience, enhancing interaction between the brand and consumers while boosting brand loyalty.
See More
Samsara Unveils Super Bowl Ad and Racing Partnership
- Super Bowl Ad Launch: Samsara will debut a Super Bowl commercial featuring NASCAR champion Jesse Love, emphasizing the importance of teamwork and elite performance, which is expected to enhance brand visibility and attract new customers.
- Ongoing Racing Partnership: Samsara continues its partnership with Richard Childress Racing and Jesse Love as a primary sponsor for the 2026 NASCAR O'Reilly Auto Parts Series, further solidifying its brand influence in the racing sector.
- Data-Driven Performance Enhancement: The ad conveys the idea that 'even champions need a coach,' highlighting the critical role of real-time feedback and data analysis in improving performance, reflecting the core value of the Samsara platform.
- Fan Engagement Activity: Through the 'Road to Talladega Contest,' Samsara encourages fans to participate and test their knowledge, enhancing interaction between the brand and consumers, thereby increasing customer loyalty.
See More
Samsara to Release Q4 FY2026 Financial Results on March 5, 2026
- Earnings Release Schedule: Samsara will announce its financial results for the fourth quarter of fiscal year 2026 on March 5, 2026, after U.S. market close, reflecting the company's ongoing growth in the Connected Operations platform sector.
- Live Webcast Discussion: The company will host a live webcast at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) on the same day to discuss the financial results, enhancing interaction and transparency with investors.
- Investor Relations Website: A press release will be available on Samsara's investor relations website prior to the earnings announcement, ensuring timely information access for investors and improving disclosure efficiency.
- Broad Customer Base: With tens of thousands of customers across North America and Europe in sectors like transportation, construction, and retail, Samsara demonstrates its significant role and impact in the global economy.
See More
