- Analyst opinions remained mixed about C3.ai, Inc (NYSE:AI) following its dismal FY23 guidance despite a Q4 beat.
- Piper Sandler analyst Arvind Ramnani downgraded C3.ai from Overweight to Neutral and slashed the price target from $28 to $15.
- The re-rating reflected lackluster guidance triggered by enterprise spending softness, slower customer growth, and a dismal demand.
- Ramnani noted the downward revision in the FY23 revenue growth target o 23.4% from the previous 36%. Additionally, customer growth has decelerated.
- Ramnani saw a limited upside to top-line revenue targets as the overall environment appears pressured with a slowdown in net customer adds.
- Needham analyst Mike Cikos maintained C3.ai with a Buy and cut the price target from $26 to $20.
- Cikos noted that the guidance revision reflected conservatism instead of the impact of the economic environment on C3's business, leaving its pipeline unscathed.
- Several deals dropped from 4QFY22 into FY23 based on lumpiness in the business and customer timing.
- Deutsche Bank analyst Patrick Colville maintained C3.ai with a Sell and cut the price target from $18 to $14.5.
- Morgan Stanley maintained C3.ai with an Underweight and lowered the price target from $15 to $14.
- JP Morgan analyst Mark Murphy maintained C3.ai with a Neutral and cut the price target from $24 to $20.
- Price Action: AI shares traded lower by 7.01% at $17.25 on the last check Thursday.
