BNP Paribas Exane Raises Samsara Target to $55
BNP Paribas Exane increased its price target for Samsara Inc (NYSE:IOT) to $55 per share, up from the prior $40 target, while maintaining an Outperform rating. The stock was trading at $40.20 at the time of the note, and analyst price targets ranged from $39 to $60, implying a potential upside of roughly 33% to the consensus estimate.
The brokerage highlighted the company’s second‑quarter net new annual recurring revenue (ARR) growth as the second‑fastest among its peers over the past ten quarters, reinforcing confidence that Samsara’s 30% top‑line growth trajectory remains intact. Over the last twelve months, Samsara delivered 29.5% revenue growth year‑over‑year and sustained an impressive gross profit margin of 76.43%. Sixteen analysts have revised their earnings forecasts upward for the upcoming period, according to InvestingPro data.
Deal momentum remains robust, particularly among customers generating $1 million or more in annual recurring revenue, and the pace of wins and expansions in the public sector exceeded the firm’s expectations. BNP Paribas Exane cautioned that net new ARR growth may moderate in the near term because of tougher comparables, but it still expects ARR to continue accelerating.
The new $55 price target is derived from a multiple of 13 times calendar‑year 2027 sales, compared with the previous target of $40 based on a 10‑times sales multiple. While BNP raised its earnings estimates, GAAP estimates are lower due to higher stock‑based compensation expenses. InvestingPro’s analysis notes that the stock appears overvalued relative to its fair‑value calculation.
Samsara’s own second‑quarter fiscal 2027 results beat expectations across key metrics, with net new ARR reaching $134 million and overall ARR growth remaining strong at 30%, pushing total ARR beyond $2 billion. Analyst coverage was broadly positive: Guggenheim lifted its target to $51, Evercore ISI to $55, BofA Securities to $55, Wells Fargo to $58, and Truist Securities to $48, underscoring the favorable sentiment surrounding the company’s growth and profitability outlook.