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Investing.com - Wedbush has lowered its price target on C3.ai (NYSE:AI) to $23.00 from $35.00 while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock currently trades near $22, having declined over 30% in the past six months. Analyst targets for the stock range from $13 to $50, reflecting mixed sentiment about its prospects.
The price target reduction follows what Wedbush described as "a brutal quarter" for the artificial intelligence software provider.
Wedbush expressed concern about C3.ai’s performance, noting that "if C3 cannot turn this around darker days could be ahead."
The firm cited a "massive sales miss" as the primary reason for adjusting its price target downward by approximately 34%.
Despite the reduced price target, Wedbush maintained its Outperform rating, indicating it is giving the company "a few quarters to reverse this negative sales trend with Siebel now out of the sales picture."
In other recent news, C3.ai announced preliminary first-quarter revenue results, revealing figures between $70.2 million and $70.4 million. This fell short of the midpoint of its guidance by 33% and marked a 19% decline year-over-year, as noted by Needham analyst Mike Cikos. Following these results, DA Davidson downgraded C3.ai from Neutral to Underperform and reduced its price target from $25.00 to $13.00. Wolfe Research also reiterated its Underperform rating with a $15.00 price target, expressing concern over the company’s decision not to reiterate guidance in a recent filing. Additionally, C3.ai is undergoing a leadership change as CEO Thomas M. Siebel plans to step down due to health issues related to an autoimmune disease. The company has initiated a search for Siebel’s successor, managed by an international search firm under the guidance of a board and management committee. These developments have raised questions about the company’s future direction and leadership stability.
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