BofA Stays Bearish on C3.ai (AI), Sees Limited Upside Amid Rising AI Competition

BofA expressed concerns astir C3.ai’s quality to support competitory differentiation successful the AI class which is being attacked from each angles. The AI applications marketplace is becoming progressively crowded, which is shaking the company’s quality to prolong differentiation. Moreover, it believes that lone clip volition archer whether C3.ai volition go a important stock gainer successful the AI space.

There is, however, different hurdle, which is that the company’s gross maturation and escaped currency travel illustration whitethorn beryllium antagonistic for respective much years. Until these metrics amended and C3.ai worth proposition becomes semipermanent defensible, its shares volition apt underperform its infrastructure bundle peers.

“Our $10 PO (was $14) is based connected 2.7x (was 3.3x) EV/FY26E revenue, a discount to peers astatine 5.7x. We revise our aggregate and estimates to bespeak our updated presumption connected maturation potential, risks and adjacent aggregate compression.”

C3.ai, Inc. (NYSE:AI) is an endeavor artificial quality (AI) bundle institution progressive successful gathering and operating enterprise-scale AI applications and accelerating integer transformation.

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