C3.ai price target raised to $22 from $18 at Deutsche Bank

Deutsche Bank analyst Brad Zelnick raised the firm’s price target on C3.ai to $22 from $18 and keeps a Sell rating on the shares. The analyst maintains a cautious on shares of C3 following what the firm views as mostly inline results that sent shares up over 20%. There were some encouraging signs in the quarter from the federal vertical, early traction in state and local government starting in its home Bay Area region, momentum with its partner network and increasing customer interactions, the analyst tells investors in a research note. However, Deutsche’s skepticism remains relative to the true differentiation of C3’s platform, the sustainability of any mindshare gains from its ability to quickly incorporate generative artificial intelligence into its model-driven architecture, and its potential to hit evolving financial targets.