C3ai (AI – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Sanjit Singh from Morgan Stanley maintained a Sell rating on the stock and has a $30.00 price target.
Sanjit Singh has given his Sell rating due to a combination of factors that suggest caution for investors. The company’s revenue growth has decelerated after several quarters of acceleration, with a slight slowdown to 26% year-over-year in the third quarter. Although the revenue was slightly above consensus expectations, the reliance on demonstration licenses, which accounted for 29% of total revenue, raises concerns about the sustainability and long-term value of these revenue streams.
Additionally, while there has been an improvement in deal-related metrics and promising developments with partnerships like Microsoft and AWS, there remains uncertainty regarding the impact of Baker Hughes. The risk-reward profile appears more balanced, but the potential challenges from existing partnerships and the broader market environment contribute to a cautious outlook, justifying the Sell rating.
In another report released today, KeyBanc also maintained a Sell rating on the stock with a $21.00 price target.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AI in relation to earlier this year.