Samsara Set To Disrupt $19B Telematics Industry: Analyst Predicts AI Dash Cam Expansion

Zinger Key Points
  • Samsara is a leader in the AI dash cam and software market, which could double in 3 years.
  • The company is gaining ~1% share annually in the North American vehicle telematics industry.

Earlier this month, Samsara Inc IOT reported higher-than-expected earnings for its fiscal first-quarter.

The company has emerged as a leader in AI dash cam and software for real-time driver coaching and is disrupting the vehicle telematics industry, according to BofA Securities.

The Samsara Analyst: Matt Bullock initiated coverage of Samsara with a Buy rating and price target of $37.

The Samsara Thesis: The AI dash cam and software market is likely to double in three years, Bullock said in the initiation note.

Check out other analyst stock ratings.

The vehicle telematics industry, in which the company is capturing a market share of around 1% in North America annually "with its easy to use and feature-rich solution," is valued at over $19 billion, the analyst stated. Each of Samsara’s fleet-focused offerings generates over $450 million in annual recurring revenues, he added.  

"Telematics (software using GPS & sensors to monitor location/fuel use/idling for greater efficiency) is littered with clunky legacy products – and we are in the early stages of a widespread replacement cycle," Bullock wrote.

A lower-than-expected beat-and-raise quarter has exerted pressure on the stock, "but we view shares as oversold given little change to our LT growth thesis post-print," the analyst said. "We are 2%/4% above consensus for FY25/FY26 revenues," he added.

IOT Price Action: Shares of Samsara were down 0.84% to $29.39 at the time of publication on Thursday.

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