C3.ai Hits 'Bump In The Road': 5 Analysts Weigh Strong AI Demand Against Margin Pressures, Subscription Weakness

Although C3.Ai Inc (NYSE:AI) shares are falling following the company’s first-quarter financial results, analysts largely remain positive on the longer-term story, fueled by a continued rise in AI-related demand.

Wedbush analyst Dan Ives maintained C3.ai with an Outperform rating Thursday morning and lowered the price target from $40 to $30.

Oppenheimer analyst Timothy Horan maintained an Outperform rating on the stock following earnings.

KeyBanc analyst Eric Heath believes the stock is fairly valued at around $19 per share.

Piper Sandler analyst Arvind Ramnani maintained a Neutral rating on C3.ai and lowered the price target from $29 to $24

DA Davidson analyst Gil Luria maintains a Neutral rating and slashed the price target from $30 to $20.

See Also: Nvidia Takes A Page From Apple’s Playbook: Jensen Huang Wants AI Stalwart To Go Beyond Chips And Be One-Stop Shop For Data Center Clients

Wedbush: In a new note to clients, Ives explained that the company’s better-than-expected revenue and earnings numbers are being overlooked due to a change in how software and services revenue is reported, which is going to impact subscription and services growth moving forward.

Looking ahead, C3.ai expects to generate negative free cash flow in the coming quarters, but anticipates positive ...