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Is AI Stock a Buy After Earnings? 3 Analysts Weigh In on C3.ai Price Predictions.

C3.ai (NYSE:AI) is having a good day so far. Shares of AI stock are in the green after the company reported earnings for its fiscal third quarter ended Jan. 31. The artificial intelligence (AI) company posted revenue of $69.8 million, up 42% year-over-year. The revenue figure also beat consensus estimates of $67.2 million by nearly 4%. However, C3.ai still remains unprofitable, reporting an adjusted loss per share of 7 cents. Meanwhile, analysts were expecting an adjusted loss per share of 26 cents.

Cars in a parking lot against a gray cloudy sky with a billboard for C3.ai with company logo
Source: Tada Images / Shutterstock

On the other hand, shareholders of AI stock were surprised by a guidance raise. CEO Thomas Siebel added that,

“We remain confident in our long-term prospects based on our accelerating progress and the magnitude of the addressable enterprise AI market opportunity. Given these trends and our progress to date, we have raised our fiscal year 2022 guidance to reflect revenue growth of 38% over fiscal year 2021.”

Indeed, the company raised its full-year guidance to $252 million after issuing prior guidance of $248 million to $251 million. Furthermore, the revenue guidance is above the analyst estimate of $249.6 million.

Another development to come out of C3.ai’s earnings was the departure of CFO Adeel Manzoor, who left last month. Manzoor will be replaced by Juho Parkkinen.

So, what’s next for C3.ai? Shares of AI stock are still down more than 25% year-to-date. On top of that, the company has lost more than 80% of its market capitalization since its initial public offering (IPO) in late 2020. Let’s pivot over to see how Wall Street feels about the artificial intelligence company.

AI Stock: 3 Analysts Weigh In on C3.ai Price Predictions

  • Morgan Stanley has a price target of $31. Analyst Sanjit Singh states that he would like to see “more material acceleration in growth and clearer signs of success in penetrating the mainstream enterprise market” in order to be more bullish.
  • JP Morgan has a price target of $27. Analyst Mark Murphy acknowledges the current “high sensitivity among investors amid a volatile market environment.” Further, the analyst seems to be uneasy with his company analysis, stating that there could be either a 50% upside risk or a 50% downside risk. For the future, Murphy would like to see continued partnerships, a reduction in customer concentration and a growing sales force.
  • Needham has a price target of $26. Analyst Jack Andrews believes that C3.ai is well-positioned to accelerate growth in the enterprise AI market. However, the analyst notes that “patience is required” for investors of AI stock. Ultimately, Andrews believes that the company has advanced technology, evidenced by “ramping pipeline traction with key partners.”

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/03/is-ai-stock-a-buy-after-earnings-3-analysts-weigh-in-on-c3-ai-price-predictions/.

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