Canaccord Raises C3.ai Price Target to $10

Canaccord analyst David Hynes Jr. raised the price target on C3.ai (NYSE: AI) to $10.00 (from $8.00) while maintaining a Hold rating.

“The cost profile of the business has also meaningfully rationalized, with Q4 opex down $34M yoy and headcount down from ~1,075 to ~700.

The FY27 operating loss guide narrows as non-employee savings phase in during 2H.

The market is large and growing on anyone’s numbers, and self-inflicted sales execution issues, if accurately diagnosed, are fixable rather than structural.

We continue to be supporters of President Stephen Ehikian, and it’s our view that his diligence in his time as CEO has laid the groundwork for this nascent turnaround.

We also view Siebel’s return to the CEO seat and an renewed financial commitment to the tune of a ~$69M stock purchase as ultimately constructive indicators for share performance.

Reiterate Hold and raise PT to $10, reflecting 3.5x FY28 sales, a year in which we see more potential for a recovery in growth.”

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