Target Downgraded to Underperform by Edgewater Research

Target was downgraded to Underperform from Neutral by Edgewater Research.

Edgewater Research has downgraded its rating on C3.ai (NYSE: AI) stock from Neutral to Underperform, reflecting recent financial and operational developments. The downgrade follows a series of disappointing quarterly results and strategic changes within the company.

C3.ai reported preliminary results for the first quarter of fiscal 2026 that fell significantly below previous guidance. This underperformance has led to a downgrade from Neutral to Underperform by Edgewater Research, who reduced their price target to $13.00. The research firm cited the weak financial performance and uncertainty around the company's future guidance as primary reasons for the downgrade [1].

Additionally, C3.ai has been searching for a successor to its CEO, Thomas M. Siebel, who stepped down due to health issues related to an autoimmune disease. The search for a new CEO is being conducted by an international firm under the guidance of the company's board and management team [1].

Despite these challenges, C3.ai has entered into strategic partnerships to expand its technological applications. The company has partnered with Huntington Ingalls Industries to enhance digital technologies and apply artificial intelligence in shipbuilding. Furthermore, C3.ai has partnered with Univation Technologies to commercialize AI-powered predictive maintenance solutions for the petrochemical industry [1].

However, these partnerships and strategic moves may not be sufficient to address the current financial concerns. Investors should closely monitor C3.ai's future guidance and the progress in its search for a new CEO.

References:
[1] https://www.investing.com/news/analyst-ratings/c3ai-stock-rating-reiterated-at-underperform-by-wolfe-research-93CH-4182133