Shares of C3.ai Inc. AI were down 20% before Thursday’s close following a quarterly report that saw sales fall short of expectations and the artificial intelligence company’s forecast was lowered.
Piper Sandler on C3.ai
Analyst Arvind Ramnani maintained a neutral rating while reducing the price target from $18 to $14.
“The company announced a shift to consumption-based pricing, which should help it become a stronger business in a stabilized environment, and moved its non-GAAP profitability target to FY24 (from l exercise 24 to exercise 25),” Ramnani said. in a note.
“In our view, the company’s lower revenue target is disappointing as the initial guidance was already modest; however, we view the increased focus on margins as a positive,” he added.
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JMP titles on C3.ai
Analyst Patrick Walravens reiterated a market outperformance rating while lowering the price target from $28 to $25.
“The forecast was disappointing as C3.ai faces a tougher trading environment, saw 66 transactions exit the quarter and, in response, transitions to a consumption-based pricing model,” Walravens wrote in a note.
“Although the road has been very bumpy for C3 and investors are rightly skeptical, we continue to appreciate the long-term opportunity for C3,” he added.
AI Price Action: Shares of C3.ai were down 20% at $14.40 on Thursday afternoon before the close.