c3.ai (AI) PT Lowered to $103 at Needham & Company

Needham & Company analyst Jack Andrews lowered the price target on c3.ai (NYSE: AI) to $103.00 (from $122.00) while maintaining a Buy rating.

The analyst commented, "AI reported a solid 2QFY22 based on high level metrics, which broadly reinforces our thesis that the company is poised to continue accelerating growth in a large and nascent Enterprise AI opportunity. Specifically, revenue grew 41% YoY to $58.3 million (a strong acceleration from 30% growth in 1QFY22), beating both our estimates and consensus by ~$1.5 million, and the company raised FY22 revenue guidance by $4.5 million at the midpoint to a range of $248- $251 million. However, a greater than anticipated services mix, a billings miss relative to our estimate and consensus, a sales force reorganization, and CFO departure are likely to raise investor questions. Patience is required, but we believe the value proposition of AI’s technology remains strong, as evidenced by ramping pipeline traction with key partners. Reiterate BUY."

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