C3 AI downgraded to Underweight from Sector Weight at KeyBanc

KeyBanc downgraded C3 AI (AI) to Underweight from Sector Weight with a $29 price target which implies 28% downside from current levels. The firm sees an unfavorable risk/reward with shares trading at 13.3-times enterprise value to revenue versus the company’s 10%-20% growth peers at 7.3-times. Consensus fiscal 2026 and 2027 revenue estimates for C3 AI may be too high considering subscription revenue growth excluding upfront license moderated to negative 1% year-over-year in Q2, the analyst tells investors in a research note. KeyBanc also sees potential risks if the Baker Hughes agreement is not renewed in fiscal 2026 or if the Microsoft partnership does not yield material results.