UBS analyst Radi Sultan maintained a Hold rating on C3ai today and set a price target of $16.00.
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Radi Sultan has given his Hold rating due to a combination of factors including C3ai’s weaker fiscal year 2026 outlook and the company’s cautious revenue guidance. The projected revenue for FY26 is significantly lower than investor expectations, indicating a conservative approach by the management. Although the numbers appear de-risked, there remains uncertainty about whether C3ai can achieve a 15-20% growth in FY27 and beyond.
Additionally, management has not provided clear guidance for FY27, though they have not identified any major obstacles to achieving the desired growth. The company has faced challenges with deal closures, but some progress has been made in recent months. Despite potential opportunities in the defense sector, particularly with the US Air Force, the limited visibility into revenue dynamics and the declining percentage of license revenues contribute to the Hold rating.
Based on the recent corporate insider activity of 77 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.