Piper Sandler Likes Samsara's (IOT) High Upside

Samsara Inc. (NYSE:IOT) is one of the 11 Best Beaten Down Growth Stocks to Buy Now.

Piper Sandler, on February 6, cut its target price on Samsara by 24.4% to $37 (from $49) but kept its Overweight call on the shares. The firm noted that while overall investor sentiment for software stocks was at an all-time low (“More frozen than Elsa’s castle” was the exact term the analyst used), it believes that IOT’s high upside, operational budget stickiness (which can serve as a moat against the impact of artificial intelligence on software companies), and de-risked FY2027 numbers (which would make growth in the mid-20s for the next year realistic) make Samsara a good investment at its current price. This view on IOT is in line with what other firms are saying about the company.

On the first point regarding Samsara’s ability to withstand the negative impact of artificial intelligence, BTIG, in a note dated December 17, said that IOT is operating in a “highly attractive end-market tethered to operational budgets,” making IOT’s relationship with its clients sticky. RBC Capital, on January 5, said that IOT is one of the few software companies well-positioned for enterprise AI adoption. As such, the company will likely benefit from the AI tailwinds in 2026.

On the second point regarding the de-risked FY2027 numbers, RBC Capital said that management’s guidance on Q4-2026 revenue is quite conservative given the strong beat in Q3-2026. For reference, Samsara’s management expects $421 million to $423 million for Q4-2026 (vs. consensus of $419.2 million).

Samsara Inc. (NYSE:IOT) develops cloud-based sensor systems, which combine plug-and-play sensors, internet connectivity, and cloud-based software. The company is based in San Francisco, California, and was started in 2015 by John Bicket and Sanjit Biswas.

While we acknowledge the potential of Samsara Inc. (NYSE:IOT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.