Wedbush says C3 AI CEO transition ‘a net negative,’ increases M&A chances

Wedbush notes C3 AI (AI) announced that Founder/Chairman/CEO Tom Siebel and Board of Directors have initiated a search for a successor CEO, who is stepping away due to health issues. The firm views the transition as a net negative as Siebel’s departure represents a pivotal moment for C3. Further, Wedbush believes that coming off the news that Siebel is stepping down as CEO significantly increases the chances of C3 being an M&A over the next 3-12 months. The firm thinks that there will be an acceleration of M&A in the AI space from both strategic/financial players given the strategic need this technology is playing in the future of AI deployments and views C3 as one of the most attractive M&A targets with the company’s laser focus on the convergence of AI, big data, and cloud computing. Wedbush maintains an Outperform rating on the shares with a price target of $35.