Morgan Stanley analyst Sanjit Singh maintained a Sell rating on C3ai today and set a price target of $11.00.
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Sanjit Singh has given his Sell rating due to a combination of factors related to C3ai’s recent financial performance and future projections. The company’s first-quarter results for 2026 showed a significant decline in year-over-year revenue growth by 19% and a drastic reduction in operating margin by 82%. These figures have led to a reassessment of the company’s growth trajectory and margin profile, prompting a downward revision of estimates.
Sanjit Singh’s analysis also resulted in a lowered price target for C3ai’s stock, reducing it from $22 to $11. This adjustment is based on applying a 27x free cash flow multiple to the company’s calendar year 2034 estimates, which are now considerably lower. Additionally, the price target implies a 3.2x enterprise value to 2026 sales ratio, which is a discount compared to the median for similar-sized companies. These factors collectively contribute to the Sell rating for C3ai’s stock.
According to TipRanks, Singh is a 3-star analyst with an average return of 4.4% and a 55.37% success rate. Singh covers the Technology sector, focusing on stocks such as Snowflake, Datadog, and Gitlab.
In another report released on September 5, J.P. Morgan also maintained a Sell rating on the stock with a $10.00 price target.