Canaccord Lowers C3.ai Price Target to $7

Canaccord analyst David Hynes Jr. lowered the price target on C3.ai (NYSE: AI) to $7.00 (from $16.00) while maintaining a Hold rating.

“There are some green shoots worth noting: federal, defense, and aerospace bookings grew 134% yoy and accounted for 55% of total bookings, and the company closed notable agreements with USDA, the Department of Energy, NATO, and ExxonMobil among others.

The strategic integrator program also expanded with new partners.

But these demand signals sit uneasily against a revenue run-rate that, at Q4’s guided midpoint of ~$50M, annualizes to roughly $200M, a business less than half the size it was just 18 months ago.

Reiterate Hold and lower PT to $7, reflecting 2.3x FY28 sales, a year in which we see more potential for a recovery in growth.”

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