2024-06-30 01:25:31 ET
Summary
- C3.ai is expecting to see revenue growth continue to accelerate in FY25, while its Q4 results demonstrated the fifth straight quarter of accelerating growth.
- The company's decision to focus more on smaller upfront deals to land more clients is working wonders for its growth.
- Despite recent run-up, C3.ai remains modestly valued, and its stock is still down YTD.
- The company trades at a ~7x forward revenue multiple, several turns lower than closest pure-play peer Palantir.
- Reiterating my buy position on C3.ai with a $34 price target, or ~15% upside.
While the AI trend has lifted the entire software sector and propelled the major indices to brand new heights, there are a number of notable holdouts including and especially among AI plays. C3.ai ( AI ) is the biggest example, with the AI PaaS (platform as a service) vendor down in the single digits this year despite tremendous revenue performance and secular tailwinds toward AI and automation....
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C3.ai: Acceleration Continues, Buy On The Upswing