DA Davidson downgraded C3 AI (AI) to Underperform from Neutral with a price target of $13, down from $25. The company late Friday announced results that came in significantly below guidance and a restructured sales and services organization, bringing in new leaders across regions, the analyst tells investors in a research note. The firm says it previously lacked conviction around the durability of C3 AI’s growth amid its increasing reliance on non-recurring revenue. It suspects the preliminary results reflect this trend finds it likely the business gets worse before it gets better.
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