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C3.ai Analysts Reflect Bearish Sentiment in Recent Ratings

C3.ai's recent analyst ratings indicate a notable bearish shift in sentiment, with six out of eight analysts lowering their targets. Investors should take note of the significant decrease in price expectations as the average target drops by 27.05%.

Date: 
AI Rating:   4
**Analyst Rating Trends**: The latest report shows a predominance of bearish sentiment surrounding C3.ai, as evident from the ratings released by eight analysts. Notably, there are no bullish or somewhat bullish ratings, highlighting the negative outlook. Over the recent months, the analysts have lowered their price targets significantly. Analysts' average 12-month price target stands at $23.62, which is a decline of 27.05% from previous assessments. The previous months' ratings reveal a cautious perspective, particularly in the last 30 days, where only one rating was negative. The lack of optimistic projections indicates potential challenges ahead.
**Revenue Growth**: C3.ai showcases a revenue growth rate of **26.0%** over the past three months. While this indicates progress, it falls short compared to the average growth rates among industry peers, presenting a point of concern for investors looking for stronger performance in the competitive landscape of artificial intelligence software.
**Net Margin**: The report reveals a net margin of **-81.19%**, which suggests operational inefficiencies and challenges in profitability. A high negative net margin is typically unfavorable, as it illustrates ongoing losses relative to revenues and can deter potential investors from considering the stock.
**Return on Equity (ROE)**: C3.ai's ROE of **-9.33%** is a further indicator of operational challenges but demonstrates a slightly better performance compared to its net margin. However, this negative ROE suggests that the firm's equity capital utilization has not been effective. Investors should be wary of companies that consistently report negative returns on equity, as it can hint at deeper financial issues.
**Debt Management**: The company maintains a debt-to-equity ratio of **0.01**, which is below industry standards and indicates a conservative approach to leverage. This aspect can be seen positively, as a low debt ratio may help C3.ai navigate turbulent market conditions.
In summary, investors are advised to exercise caution with C3.ai. The negative trends in analyst ratings and financial metrics suggest potential headwinds for the company in the short to medium term.
Stocks:  AI