C3.ai shares (AI) – Get report It fell Thursday after the company reported fourth-quarter results, reducing its net loss by 26% over revenue.
The Redwood City, California-based artificial intelligence software provider to help companies adapt their operations to digital, also appointed Sam Alkharrat president and chief revenue officer.
C3 shares at the latest check-in fell 12% to $ 67.23.
Wedbush analyst Dan Ives claimed a rating higher than the stock, but drastically lowered his price target to $ 100 per share from $ 175 “to reflect greater variability in the trajectory of the company’s AI deal in the future”.
“With the company going public late last year and having a choppy first quarter along with a locking cantilever, this was an important impression to stabilize the ship and highlight the underlying growth story unfolding under the veteran software. [Chief Executive] Tom Siebel, “Ives said.
Ives still views C3 as one of the most disruptive business software providers in a space that has a total addressable market of $ 200 billion.
Canaccord Genuity’s David Hynes Jr. put C3.ai on hold and cut his price target from $ 120 to $ 75.
“What’s difficult with this action,” he said, “is that it’s really about embracing the long-term vision: that model-driven architecture is differentiated, that the company can replicate best practices in verticals outside of the industry / energy complex, which expanded partnerships and newly hired sales teams will produce the same productivity as in the past, etc.
“Overall, we are optimistic that much of this will work out …” he said. For now, the shares are expensive at 29 times the business value of earnings based on 2022 estimates, the analyst said.
Deutsche Bank analysts held a holding position as they lowered the price target to $ 63 from $ 98.
The move followed what the investment firm called a “regular quarter,” as underwriting revenues did not show sequential growth and were below expectations.
Morgan Stanley maintained an underweight rating while raising its price target to $ 62 from $ 60. The investment firm says it was encouraged by the improvement in remaining performance obligations, but says the stock’s valuation is not yet attractive.
Piper Sander maintained an overweight rating while lowering her price target to $ 98 from $ 141.
The firm called C3’s results mixed, as investors “were looking for the company to target 2022 tax revenue growth of more than 34%, as C3 benefits from delayed 2021 tax projects, a set broader product portfolio and broader business relationships. “