Before a multiyear adoption cycle for artificial intelligence -enabled dashcam technology takes hold, investors should watch a key software stock in the automotive industry , according to Bank of America. ” Samsara (IOT) is revolutionizing roadway safety,” analyst Matt Bullock wrote in a Thursday note. “While dash cam hardware is relatively commoditized, the secret sauce lies in the company’s software, which provides real-time coaching via in-cab audio alerts if drivers become distracted or follow 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 on shares, which implies about 25% upside from Tuesday’s close. IOT 1D mountain Samsara, 1-day Bullock’s thesis is underpinned by constructive end-market demand trends and checks with industry participants that suggest a differentiated suite of offerings. Additionally, there’s been “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, looking for new product announcements — including the possibility that the company may discuss how it can leverage generative AI. Bullock thinks Samsara’s new offerings may move the needle for the company’s growth in the long term. “More modern competitors lack the comprehensive feature set/platform breadth provided by Samsara (which offers a full suite of products spanning other areas like telematics, equipment and site monitoring, and driver workflow apps),” he wrote. “They also have smaller R & D budgets and install-bases from which to collect data and improve AI models,” Bullock added. “Because of this, we expect Samsara to remain on the cutting edge of the video-based safety software market.”
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