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Investing.com - Citizens has reiterated its Market Outperform rating and $24.00 price target on C3.ai (NYSE:AI), citing multiple factors supporting long-term capital appreciation potential. The target represents a 60% premium to C3.ai’s current price of $15.01, aligning with the highest analyst target of $24, while some analysts have set targets as low as $8, according to InvestingPro data.
The firm highlighted C3.ai’s broad portfolio of industry-specific AI and Gen AI applications, with notable strengths in predictive maintenance and supply chain solutions. Citizens also pointed to C3.ai’s robust partnership with Microsoft (NASDAQ:MSFT), which has yielded "100 customer agreements across 17 industries" and 24 joint agreements in the fiscal second quarter alone. These partnerships have contributed to C3.ai’s revenue of $372.1 million and 14.34% year-over-year growth.
Despite challenges including a significant business decline in the first fiscal quarter and a leadership transition to new CEO Stephen Ehikian following founder Thomas Siebel’s health-related departure, Citizens remains optimistic about the company’s prospects. InvestingPro data reveals that six analysts have revised their earnings downwards for the upcoming period, and the company is not expected to be profitable this year.
The research note emphasized C3.ai’s 89% year-over-year increase in federal bookings during the second fiscal quarter, achieved despite the government shutdown. Citizens also referenced the company’s large total addressable market, estimated by C3.ai to be $271 billion in 2024. Despite this growth in bookings, C3.ai maintains a healthy gross profit margin of 56.47% but remains unprofitable over the last twelve months.
Citizens additionally noted C3.ai’s potential as an acquisition target, referencing a November 10 Reuters report that the company "is exploring a potential sale" though "the sale process is in its early stages and other options are on the table." C3.ai’s strong financial position with more cash than debt on its balance sheet and a current ratio of 7.65 could make it an attractive acquisition target. For deeper insights into C3.ai’s financial health and comprehensive analysis, check out the Pro Research Report available on InvestingPro.
In other recent news, C3.ai Inc. reported its Q2 2026 earnings, exceeding expectations with an earnings per share (EPS) of -$0.25, compared to the forecasted -$0.33. This represents a 24.24% surprise for investors. The company also reported revenue of $75.1 million, slightly above the anticipated $74.93 million. These results highlight a positive performance for the quarter. The financial outcomes have drawn attention from various analysts, although no specific upgrades or downgrades were reported. The earnings announcement and revenue figures are crucial for investors assessing the company’s current financial health. As these developments unfold, stakeholders are closely monitoring C3.ai’s progress.
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