Piper Sandler Maintains Neutral Outlook but Raises Price Target for C3.ai
For the second time within a week, Piper Sandler has revised its price target for C3.ai following the enterprise artificial intelligence (ai) company’s financial results announcement for the fiscal third quarter ended on January 31, 2024.
Piper Sandler’s Revised Price Target for C3.ai
On Monday, Piper Sandler reaffirmed its Neutral stance on C3.ai shares but increased the price target from $27 to $33. As of this writing, the C3.ai stock was listed at $35.87, which represents an 8% decline to Piper Sandler’s new target price of $33 per share. Previously, the firm had raised its C3.ai price target from $13 to $23.
Wedbush Securities Boosts Price Target for C3.ai
Wedbush Securities is another institution that raised its price target for C3.ai during the past week, but unlike Piper Sandler, they kept an outperforming rating on the stock. The analysts increased their target from $35 to $40 on March 2nd, representing a 11.5% increase from the current price.
Morgan Stanley Revises Price Target but Keeps Underweight Rating for C3.ai
Additionally, Morgan Stanley raised its price target to $21 from the previous $20 while maintaining an Underweight rating on C3.ai stock, citing the company’s impressive revenue performance in Q3 2024.
C3.ai’s Strong Q3 Performance and Growing Market Interest in Enterprise ai
The recent price target increases by Piper Sandler, Wedbush Securities, and Morgan Stanley come after C3.ai’s latest earnings report revealed in late February, where the company acknowledged that “the market interest in enterprise ai is staggering.”
C3.ai’s Revenue Growth and Key Sectors
The primary driver for C3.ai’s growth remains its subscription revenue, which predominantly comes from government contracts. However, the company has noticed significant bookings distribution from various sectors, including manufacturing, agriculture, chemicals, professional services, and more.
C3.ai’s Q3 Performance and Future Guidance
“We had a great quarter,” stated C3 ai CEO and Chairman Thomas M. Siebel in the earnings call. “Total revenue of $78.4 million grew 18% year-over-year, exceeding our guidance range. Customer engagement grew 80% year-over-year.”
For the fourth quarter of fiscal 2024, C3.ai projects revenue guidance between $82.0 – $86.0 million, and a full-year revenue target of $306.0 – $310.0 million.
