JP Morgan cuts C3.ai target price to $10 from $23

JP Morgan cuts C3.ai target price to $10 from $23

JPMorgan has lowered its price target for C3.ai, Inc. (NYSE: AI) from $23 to $10, reflecting a significant reduction in the investment bank's outlook for the artificial intelligence software provider. This move comes amidst a series of negative developments for the company, including disappointing financial results and a decrease in insider confidence.

Northern Trust Corp recently reduced its stake in C3.ai by 1.4%, now owning approximately 0.78% of the company, valued at about $21.89 million [1]. This reduction follows a pattern of insider selling, with insiders selling approximately 2.15 million shares worth around $50.24 million over the last 90 days, indicating a potential lack of confidence in the stock's future performance [1].

Several investment firms have also adjusted their ratings and target prices for C3.ai. Northland Capital Markets downgraded it from "strong-buy" to "hold," while DA Davidson lowered its target price from $25.00 to $13.00 [1]. Additionally, UBS has lowered its price target on C3.ai to $16.00 from $23.00, citing concerns about growth and the company's recent fiscal first-quarter results [2].

C3.ai reported its fiscal first-quarter results for 2025, revealing a larger-than-expected loss. The company posted an earnings per share of -$0.37, which was below the analysts’ forecast of -$0.20. Revenue for the quarter was $70.3 million, falling short of the anticipated $94.5 million [2]. These financial results have prompted KeyBanc to slash its price target for C3.ai from $18.00 to $10.00, while maintaining an Underweight rating [2].

The stock has declined over 51% year-to-date, with analyst targets ranging from $10 to $28 [2]. Despite these challenges, the company maintains strong financial health with a current ratio of 6.86x and more cash than debt on its balance sheet [2].

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company, providing a range of AI solutions including C3 AI platform, C3 AI Ex Machina, C3 AI CRM, and C3 Generative AI Product Suite [1]. The company's market capitalization stands at $2.22 billion, with a price-to-earnings ratio of -7.39 and a beta of 1.96 [1].

References:
[1] https://www.marketbeat.com/instant-alerts/filing-northern-trust-corp-trims-stock-holdings-in-c3ai-inc-ai-2025-09-01/
[2] https://www.investing.com/news/analyst-ratings/c3ai-stock-price-target-lowered-to-16-from-23-at-ubs-on-growth-concerns-93CH-4223935