Shares of C3.ai Inc AI were down 20% ahead of the close Thursday in the wake of a quarterly report that saw sales fall short of expectations and the lowering of the artificial intelligence company's guidance.
Piper Sandler On C3.ai
Analyst Arvind Ramnani maintained a Neutral rating while reducing the price target from $18 to $14.
“The company announced a shift to consumption-based pricing, which it expects to help it emerge as a stronger company in a stabilized environment, and moved its target for non-GAAP profitability forward to FY24 (from FY24- FY25),” Ramnani said in a note.
“In our view, the company's lowered revenue target is disappointing because initial guidance was already modest; however, we view increased focus on margins as positive,” he added.
Check out other analyst stock ratings.
JMP Securities On C3.ai
Analyst Patrick Walravens reiterated a Market Outperform rating while lowering the price target from $28 to $25.
“Guidance was disappointing as C3.ai is facing a more difficult business environment, saw 66 deals move out of the quarter, and, in response is moving to a consumption-based pricing model,” Walravens wrote in a note.
“While the road has been very bumpy for C3 and investors are justifiably skeptical, we continue to like the long-term opportunity at C3,” he added.
AI Price Action: Shares of C3.ai were down 20% at $14.40 Thursday afternoon ahead of the close.
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