Samsara's (IOT) higher guidance for fiscal 2027 still looks "somewhat conservative," RBC Capital Markets analysts said in a Friday note to clients.

Analysts said the company's Operational AI products have several potential use cases and could become a contributor to its numbers on scaled adoption.

RBC said the company "delivered a good start to the year," highlighted by continued large customer momentum in Q1 and an increase in annual recurring revenue, or ARR, and revenue that topped analyst expectations.

Analysts said the company is likely to benefit from "bullish" technology trends around increasing digitization across industries that depend on physical operations.

RBC retained an outperform rating on the stock and increased its price target to $42 from $41.

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