Here's Why Analysts Had Mixed Opinions On C3.ai Post Q4 Results

Here's Why Analysts Had Mixed Opinions On C3.ai Post Q4 Results
  • Analyst opinions remained mixed about C3.ai, Inc AI following its dismal FY23 guidance despite a Q4 beat.
  • Piper Sandler analyst Arvind Ramnani downgraded C3.ai from Overweight to Neutral and slashed the price target from $28 to $15.
  • The re-rating reflected lackluster guidance triggered by enterprise spending softness, slower customer growth, and a dismal demand. 
  • Ramnani noted the downward revision in the FY23 revenue growth target o 23.4% from the previous 36%. Additionally, customer growth has decelerated. 
  • Ramnani saw a limited upside to top-line revenue targets as the overall environment appears pressured with a slowdown in net customer adds.
  • Needham analyst Mike Cikos maintained C3.ai with a Buy and cut the price target from $26 to $20.
  • Cikos noted that the guidance revision reflected conservatism instead of the impact of the economic environment on C3's business, leaving its pipeline unscathed. 
  • Several deals dropped from 4QFY22 into FY23 based on lumpiness in the business and customer timing. 
  • Deutsche Bank analyst Patrick Colville maintained C3.ai with a Sell and cut the price target from $18 to $14.5.
  • Morgan Stanley maintained C3.ai with an Underweight and lowered the price target from $15 to $14.
  • JP Morgan analyst Mark Murphy maintained C3.ai with a Neutral and cut the price target from $24 to $20.
  • Price Action: AI shares traded lower by 7.01% at $17.25 on the last check Thursday.

Posted In: BriefsAnalyst ColorNewsDowngradesPrice TargetReiterationSmall CapAnalyst RatingsTech

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.