Goldman Sachs believes that recent volatility in software stocks has created an attractive buying opportunity in shares of Samsara . The Wall Street investment bank initiated research coverage of the AI-powered, fleet management stock with a buy rating and $36 price target, implying upside of roughly 30% from current levels. Shares of Samsara have plunged 49% over the past 12 months and 30% over the past three months alone. IOT 1Y mountain IOT 1Y chart Analyst Matthew Martino acknowledged that Samsara trades at a premium valuation, but argued that its price is warranted given its burgeoning free cash flow, long runway for expansion and best-in-class unit economics. "We believe recent AI-driven volatility has created an attractive entry point into a uniquely positioned compounder," he wrote. Martino called Samsara "one of the most defensible growth assets in software today." "The company is digitizing physical operations at scale by combining purpose-built edge hardware with a cloud platform that turns data into action," he wrote. "In an environment where investors are questioning the durability of many software models, we believe Samsara stands apart: its value is rooted in owned operating data, embedded processes, and daily operational dependency." Martino applauded Samsara's deep integration of artificial intelligence across its platform, noting that AI powers intelligent routing, predictive maintenance, automated safety coaching and real-time automation for customers, delivering hard returns on investment. "The company's expanding data asset is a strategic engine for innovation, enabling rapid product velocity and a steady cadence of new capabilities that expands the addressable opportunity," Martino added. "Growth is balanced across new logos, enterprise standardization and rising module attach, supporting our base case for 20%+ revenue growth with [free cash flow] compounding higher."
