C3.ai Analysts Underwhelmed By Q2 Results: 'Slow Adoption Of Generative AI'
Portfolio Pulse from Priya Nigam
C3.ai Inc (NYSE:AI) shares dropped after reporting Q2 revenue that missed expectations, with slow generative AI adoption and weak sales execution in EMEA. Analysts from JMP Securities, Morgan Stanley, KeyBanc Capital Markets, and Needham provided their insights, maintaining ratings from Market Outperform to Underweight and Sector Weight, with price targets ranging from $20 to $40. C3.ai's revenue grew 17% year-on-year, but the company faces challenges in transitioning its model and securing momentum in Generative AI, leading to a revision of operating income expectations and EBIT margin guidance.
December 07, 2023 | 10:23 pm
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NEGATIVE IMPACT
C3.ai reported lower than expected Q2 revenue and faces slow generative AI adoption and sales challenges in EMEA. Analysts maintain varied ratings with price targets between $20 and $40. The company's revenue growth and strategic investments in Generative AI may influence future performance.
The negative short-term impact on C3.ai's stock is due to the reported revenue miss and the analysts' concerns about slow adoption of generative AI and sales execution issues. The maintained ratings and price targets suggest a cautious but not entirely pessimistic outlook, which may limit the downside. However, the immediate market reaction was negative, indicating a bearish short-term sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100