Analyst Kingsley Crane of Canaccord Genuity maintained a Hold rating on C3ai, retaining the price target of $28.00.
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Kingsley Crane has given his Hold rating due to a combination of factors surrounding recent developments at C3ai. The announcement of Tom Siebel stepping down as CEO has introduced a level of uncertainty that has affected investor sentiment, as evidenced by the 10% drop in share prices. This transition period is often met with caution by the market, as leadership changes can bring unpredictability in the short term.
Despite the immediate market reaction, Crane sees potential for future growth as C3ai embarks on a new phase under new leadership. The company’s proactive approach in searching for a capable successor, whether internal or external, is viewed positively. Crane believes that the right leadership will continue to build on C3ai’s past successes and capitalize on opportunities within the dynamic AI software market. Thus, the Hold rating reflects a balanced view of current uncertainties and future growth potential.
Based on the recent corporate insider activity of 82 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.