Keeping It Simple

[eastunder]

C3.ai upgraded to Outperform from Perform at Oppenheimer; tgt $40
9:58 AM ET, 11/21/2023 - Briefing.com
. Analyst Timothy Horan added, "Upgrading C3.ai to Outperform from Perform with a $40 PT, or 10.0x FY25E FV/ revenue. Our FY23-24E revenue is intact, 1% and 4% above consensus, respectively. Our 6/29/23 initiation was positive on C3.ai's long-term growth opportunity, but neutral on the stock. Since then, C3.ai has reset guidance, worked through a model transition to usage-based, and shown real-world customer benefits. AI stock has underperformed by 20% since mid-June, while revenue growth accelerates (0.1% in F4Q23 to 23%E in F2Q24, reporting 12/6). The "AI" theme is real and durable, with C3.ai well-positioned as one of the few pure plays helping customers drive new revenue sources/major productivity improvements; should accelerate growth into '25E."