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Investing.com - Canaccord Genuity has lowered its price target on C3.ai (NYSE:AI) to $16.00 from $28.00 while maintaining a Hold rating on the stock. The company, currently trading at $15.46 and down 55% year-to-date, has seen its market capitalization decline to $2.13 billion.
The firm cited concerns about C3.ai’s growth trajectory, noting that growth is "almost certainly declining on a year-over-year basis this year" before potentially returning to over 20% growth next year on easier comparisons. This aligns with InvestingPro data showing revenue expected to decline by 23% this fiscal year, with the stock’s RSI indicating oversold territory.
Canaccord’s revised price target reflects approximately 5x the firm’s calendar year 2026 estimated sales, down from its previous multiple of 7x.
The research firm indicated that it would "take some time for the market to regain confidence in the C3 story," suggesting ongoing challenges for the artificial intelligence software provider.
While Canaccord emphasized it places "a much greater emphasis on growth prospects" in its valuation methodology, it noted that "profitability still matters" in its assessment of C3.ai’s outlook.
In other recent news, C3.ai has reported a larger-than-expected loss for its fiscal first quarter of 2025. The company announced an earnings per share of -$0.37, which missed the forecasted -$0.20, along with revenue of $70.3 million, falling short of the anticipated $94.5 million. Additionally, C3.ai provided an initial fiscal year 2026 revenue outlook of $290-300 million, indicating approximately a 24% year-over-year decline at the midpoint, which is below investor expectations of a 10-15% decrease.
Furthermore, UBS has lowered its price target for C3.ai to $16.00 from $23.00, maintaining a Neutral rating due to growth concerns following the company’s disappointing fiscal first-quarter results. KeyBanc also revised its price target on C3.ai, reducing it to $10.00 from $18.00 while maintaining an Underweight rating. This adjustment follows the company’s first-quarter results, which aligned with a pre-announcement that cited a major sales reorganization and health issues affecting CEO Tom Siebel. These developments have drawn attention from investors and analysts, reflecting ongoing challenges for C3.ai.
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