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.

Momentum17.69

Growth21.27

QualityNot Available

Value52.72

Short

Medium

Long

Analyst Calendar