UBS raises c3.ai stock price target to $17 on cautious outlook

Published 12/09/2025, 15:16
UBS raises c3.ai stock price target to $17 on cautious outlook

Investing.com - UBS raised its price target on c3.ai (NYSE:AI) to $17.00 from $16.00 on Friday, while maintaining a Neutral rating on the artificial intelligence software provider. The stock, currently trading at $16.46, sits near its 52-week low of $14.70, having declined over 52% year-to-date. According to InvestingPro data, analyst targets for the stock range from $8 to $25.

The firm cited limited visibility into the company’s fiscal year 2027 growth prospects, with UBS projecting approximately 16.5% growth amid investor estimates ranging from no growth to mid-20s growth.

UBS noted that c3.ai attributed its first-quarter weakness to execution failures around several large deals rather than broad-based customer weakness, with a mix of delayed and lost deals affecting results.

The company’s fiscal year 2026 revenue framework of $290-300 million appears to incorporate conservatism, but UBS maintained its revenue estimate of $299 million unchanged due to multiple uncertainties.

UBS highlighted that the new CEO has not yet finalized his overhaul plan, which could potentially cause significant disruption lasting several quarters, a key factor in determining the company’s second-half 2026 and fiscal year 2027 performance.

In other recent news, C3 AI has launched its new C3 AI Agentic Process Automation platform, designed to enhance business and operational workflows using AI agents. This new product aims to improve traditional robotic process automation by integrating AI reasoning capabilities. In another development, C3 AI has entered a three-year strategic partnership with SMX to deliver secure AI solutions for government and commercial clients. The collaboration will combine SMX’s Elevate platform with C3 AI’s Agentic AI Platform to meet stringent security standards.

Meanwhile, several analyst firms have adjusted their price targets for C3 AI. Canaccord Genuity has lowered its target to $16, citing concerns about the company’s growth trajectory. UBS also reduced its price target to $16, following C3 AI’s pre-announcement of weaker-than-expected fiscal first-quarter results and a disappointing revenue outlook for fiscal year 2026. KeyBanc further slashed its price target to $10, attributing the reduction to leadership changes and health issues affecting CEO Tom Siebel. These recent developments have caught the attention of investors and analysts alike.

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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