Thursday - Northland has upgraded shares of c3.ai (NYSE:AI) from Market Perform to Outperform, maintaining a price target of $35.00. The upgrade follows c3.ai's reported acceleration in subscription growth, which reached 41% in the fourth quarter of 2024. This performance is seen as a positive sign that the company is overcoming the challenges associated with transitioning to a usage-based revenue model.
The company's recent financial results have provided a clear indication that the previous headwinds are diminishing. The strength of c3.ai's pilot growth and the demand for its generative AI technology, genAI, are key factors that support the analyst's optimistic outlook for sustained high growth.
Northland's maintained stock price target of $35.00 reflects confidence in c3.ai's potential for further growth. The analyst's commentary highlighted that the robust subscription growth is a testament to the effectiveness of c3.ai's strategic shift and the market's positive reception of its offerings.
c3.ai's focus on expanding its customer base and enhancing its technology offerings has played a crucial role in its growth trajectory. The company's genAI product, in particular, has been met with strong demand, indicating a solid product-market fit.
Investors and market watchers will likely monitor c3.ai's performance in the upcoming quarters to see if the company can maintain its growth momentum and meet the expectations set by the upgraded rating and price target.
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