C3ai, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Bradley Sills from Bank of America Securities reiterated a Sell rating on the stock and has a $14.00 price target.
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Bradley Sills has given his Sell rating due to a combination of factors impacting C3ai’s performance. Despite the appointment of a new CEO, Stephen Ehikian, who has outlined a strategic plan focusing on core areas such as industrial performance and supply chain optimization, the company has not yet demonstrated improved execution. The recent earnings report showed a significant year-over-year revenue decline, and the number of initial product deployments has decreased, indicating potential challenges in converting pilot deals into substantial revenue.
Additionally, Sills points out that while the AI industry is experiencing rapid growth, C3ai’s revenue is projected to decline significantly. The company’s offerings are primarily seen as an integration framework, which faces stiff competition from cloud hyperscalers and specialized vendors. This competitive landscape, combined with product shortcomings and a lack of clear differentiation in their technology stack, contributes to the skepticism about C3ai’s ability to recover and grow in line with the broader AI market.
In another report released today, D.A. Davidson also maintained a Sell rating on the stock with a $13.00 price target.
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AI in relation to earlier this year.