BofA Securities Lowers C3.ai Price Target to $10

BofA Securities analyst Brad Sills lowered the price target on C3.ai (NYSE: AI) to $10.00 (from $14.00) while maintaining an Underperform rating.

“We reiterate our Underperform rating on enterprise AI application vendor C3.ai (AI).

We think the key debate is whether C3.ai will be able to maintain competitive differentiation in a category being attacked from all angles.

Time will tell if C3.ai becomes a significant share gainer in AI. But…we also see another hurdle: C3.ai’s revenue growth and free cash flow profile may be negative for several more years.

Until that changes and we have higher conviction that C3.ai’s value proposition is long-term defensible, we think AI shares will likely trail its infrastructure software peers that are growing faster, are more profitable, or both.

Our $10 PO (was $14) is based on 2.7x (was 3.3x) EV/FY26E revenue, a discount to peers at 5.7x.

We revise our multiple and estimates to reflect our updated view on growth potential, risks and peer multiple compression.”

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