Piper Sandler downgraded Samsara Inc. to Neutral from Overweight. The investment firm maintained its $40 price target for the company. Analysts cited valuation concerns following a significant run-up in the share price.
The firm identified a sharp and alarming decline in app downloads at the end of July. This trend emerged despite positive macroeconomic indicators and stable web traffic. Piper Sandler noted higher market expectations and difficult second-half comparisons as additional risks.
Samsara is currently navigating a strategic shift toward cross-selling. While the firm anticipates upside in second fiscal quarter results, it sees better investment opportunities elsewhere. Samsara shares declined in premarket trading following the rating change.