C3.ai stock price target slashed by KeyBanc amid leadership changes

Published 04/09/2025, 11:44
C3.ai stock price target slashed by KeyBanc amid leadership changes

Investing.com - KeyBanc has lowered its price target on C3.ai (NYSE:AI) to $10.00 from $18.00 while maintaining an Underweight rating following the company’s first-quarter results. According to InvestingPro data, analyst targets for C3.ai now range from $10 to $28, with the stock currently trading at $16.68.

The significant price target reduction comes after C3.ai reported first-quarter results that aligned with its earlier pre-announcement, which the company attributed to a major sales reorganization and health issues affecting CEO Tom Siebel. InvestingPro data shows the company maintains strong liquidity with a current ratio of 6.86, though it remains unprofitable with a -$312 million EBITDA for the last twelve months.

C3.ai has withdrawn its fiscal year 2026 guidance, though management indicated comfort with revenue estimates between $290 million and $300 million, representing a year-over-year decline of 23% to 25%. The company plans to provide updated FY26 guidance after its second-quarter earnings report.

The artificial intelligence software provider has appointed Stephen Ehikian as its new CEO, while Tom Siebel will transition to Executive Chairman, focusing on strategic partner and customer relationships and product strategy.

KeyBanc has significantly reduced its revenue estimates for fiscal years 2026 and 2027 to $295 million and $308 million, respectively, down from previous projections of $459 million and $522 million, while forecasting substantial free cash flow losses through fiscal year 2028.

In other recent news, C3.ai Inc. reported its financial results for the fiscal first quarter of 2025, revealing a larger-than-expected loss. The company announced an earnings per share (EPS) of -$0.37, which missed analyst forecasts of -$0.20. Additionally, C3.ai reported revenue of $70.3 million, falling short of the anticipated $94.5 million. These results have been a focal point for investors and analysts alike. The announcement has sparked discussions among financial analysts, with some firms potentially reconsidering their stance on the company’s performance. The earnings report is a crucial development for stakeholders, as it provides insight into the company’s financial health. Investors are closely monitoring these developments to assess the company’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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