C3.AI Stock Forecast: Will C3 AI Stock Reach $50?

C3.AI Stock Forecast: C3 AI Stock is bullish. The 12-month price prediction for C3.AI is $24 (Average of 4 Analysts)

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It provides a C3 AI application platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications.

In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market segments. It has strategic partnerships with Baker Hughes in the areas of the oil and gas market; FIS in the areas of the financial services market; Raytheon; and AWS, Intel, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.

C3.AI Stock Performance

  • 1 M: -9.5%
  • 6 M: +70.35
  • 12 M: +24.2%

C3.AI Stock Forecast: 12-Month Target

Average Price Target$24
Deutsche Bank$16
JMP Securities$27
Piper Sandler$23
DA Davidson$30

C3.AI Stock Forecast: Latest News

The business was innovative in creating a “platform” approach to AI with a wide range of applications in sectors ranging from aerospace and defense to the energy industry. Moreover, C3.ai reaffirmed its affiliation with renowned consulting firm Accenture (ACN). The firms have jointly trained Accenture personnel on the C3.ai platform, so this is more than simply a high-level partnership. By the end of fiscal 2024, C3.ai will be “cash positive and non-GAAP profitable,” according to Siebel’s statement in the earnings announcement.

C3.AI Stock Forecast: Technical Analysis

The stock of the Artificial Intelligence software company surged on the last trading day. C3.AI stocks are now above $20. However, it must be remembered the C3 AI stock was once valued at over $180 but the stock witnessed a massive crash and went below $20.

On the last trading day, C3.AI closed around 6% higher. Here is how C3.AI performed on the last trading day:

  • Open: $20.85
  • Close: $22.07
  • Gain/Loss: +5.85%
  • Market Cap: $2.35 B

Technically C3.AI stock has turned bullish and the net stock price is trading above both the 50-day and the 200-day Moving averages. On the chart below, the first level of support for the stock is $20.53. In case the stock breaks below this support, the C3.AI stock will likely retest the 50-day MA which is below $20.

Taking about the resistance, the stock faces the resistance at around $26. If the bulls manage to push the stock price above this level, it will likely open up the doors for C3.AI to enter the $30 price range.

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The RSI for the stock is below the 14-day MA and it is within the neutral zone. However, the overall direction is uptrend as the RSI is witnessing a curved-shaped recovery. With more buyers in the market, the RSI will likely rise above the 14-day MA and move higher to enter the over brought territory.

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The Stochastic RSI after falling within the oversold zone is on a reversal and has moved above the 14-day SMA. The Stoch RSI is on the uptrend and the overall momentum is bullish.

On the MACD line, the MACD series proper, however, remains below the signal line. It is exhibiting a reversal as the volume histogram bars on the bearish axis start decreasing.

Overall C3.AI stock is bullish and the stock price will potentially rise on the next trading day.

C3.AI Stock Forecast: Fundamentals

Despite sales actually dropping by 4.28% year over year in comparison to Q2 FY23, C3.ai produced revenue of $66.7 million, above analyst projections by 3.38%. Positively, the company’s contracted revenue is sometimes not first realized as actual income because it targets huge companies or corporations. For instance, C3.ai reported a 35% increase in deals from the prior year.

The business also disclosed a 7% quarterly rise in its existing performance commitments, which now total $176 million. C3.ai is having trouble turning a profit since its losses have grown significantly. The business recorded an operating loss of $47.4 million for Q3 FY22. Their deficit increased to a staggering $72 million in Q3 FY23.

The fact that this rise appears to have been mostly caused by an increase in research and development (R&D) costs of about $14 million is encouraging. Overall, I don’t think this is inherently a terrible thing. Given the current growth of the AI sector and C3.ai’s quick product launches in the generative AI market, I think this is even more critical.

Its sales and marketing expenditures only went up by a few hundred thousand dollars, while general and administrative expenses only went up by $2.19 million, which is not too awful. Together with having a strong balance sheet, the firm has $311 million in cash and cash equivalents. The business also disclosed $461 million in short-term investments. Almost little debt at C3.ai is interest-bearing. The company does, however, have $24 million in long-term obligations and $25 million in current liabilities.

C3.AI Stock Forecast: Macros

The size of the global market for business software and services, which was estimated at USD 474.61 billion in 2022, is anticipated to increase at a CAGR of 11.9% from 2023 to 2030. The rapid growth in enterprise data volume and the rising automation of business processes across end-use industries like retail, manufacturing, healthcare, and transportation are predicted to be the main drivers of demand for business software and services.

The market is also anticipated to gain from the rising deployment of corporate software and services across IT infrastructure to support better decision-making, inventory cost reduction, greater profitability, and enhanced market position for enterprises. The market demand is being fueled by various businesses’ global business expansion ambitions. Expect to see an increasing number of developers working with AI-generated code in 2023.

Additionally, the hype surrounding blockchain technology is waning, and coding for it was never really that interesting or specialized, to begin with. This is because the originality of blockchain-based apps comes more from the design of the blockchain itself than from the logic of the software that interacts with it.

C3.AI Stock Forecast: Analysts’ Price Target

  1. Deutsche Bank: Price target increased from $11 to $16
  2. JMP Securities: Price target increased from $19 to $27
  3. Piper Sandler: Price target increased from $13 to $23
  4. DA Davidson: Stable at $30
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