Piper starts Samsara at Neutral with valuation not compelling

Piper Sandler analyst James Fish last night initiated coverage of Samsara with a Neutral rating and $21 price target. Samsara provides a cloud-based system-of-record for managing connected devices, particularly in fleet management, the analyst tells investors in a research note. The company is a share gainer in a large total addressable market, but the stock’s valuation isn’t compelling at a greater than 33% growth-adjusted premium to peers, the firm contends. Piper says the stock now reflects Samsara’s "realistic upside scenario" of 40% growth. The firm would look to become more constructive at a lower share lever.