Before the multiyear adoption cycle for artificial intelligence-enabled dashcam technology begins, investors should keep an eye on a leading software stock in the automotive industry, according to Bank of America. “Samsara (IOT) is revolutionizing road safety,” analyst Matt Bullock wrote in a note Thursday. “While dash cam hardware is relatively commoditized, its secret is in the company’s software, which provides real-time coaching via in-cab audio alerts when drivers are distracted or following other cars too closely.” While the stock is down more than 13% this month and 12% for the year, Bullock initiated a buy rating on the company with a price target of $37, implying an upside of about 25% from Tuesday’s close. IOT 1D Mountain Samsara, 1-Day Bullock’s thesis is supported by constructive end-market demand trends and checks with industry participants that suggest a differentiated suite of offerings. Additionally, there are “substantial upside” to Street estimates and positive expectations for near-term catalysts. In particular, the analyst highlighted Samsara’s upcoming customer conference and analyst day next week, with new product announcements to look for — including the possibility that the company could discuss how it leverages generative AI. Bullock thinks Samsara’s new offerings could move the needle for the company’s growth over the long term. “More modern competitors lack the broad feature set/platform breadth offered by Samsara (which offers a full suite of products spanning other areas such as telematics, equipment and site monitoring, and driver workflow apps),” he wrote. “They also have smaller R&D budgets and install-bases to collect data and improve AI models,” Bullock added. “Because of this, we expect Samsara to remain at the forefront of the video-based security software market.”
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