Morgan Stanley Reiterates Underweight Rating on C3.ai

Morgan Stanley analyst Sanjit Singh reiterated an Underweight rating and $7.00 price target on C3.ai (NYSE: AI).

“Q4 revenue of $52M declined 53% YoY, marking the fourth quarter in a row of YoY decline Profitability was inline with pre-announcement but operating margins remain below -100% A significant restructuring has been completed, resulting in a 35% workforce reduction generating $135 million in annualized savings Weak bookings was blamed on sales execution, which management sees as fixable, but few details on how the company plans to return to growth were provided Trading at 5.3x CY27 Sales we remain UW as we look for evidence of improved execution and path back to topline growth and significant profitability.”

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