UPDATE: JMP Securities Starts C3.ai (AI) at Market Outperform, PT $167

(updating comment)

JMP Securities analyst Patrick Walravens initiates coverage on C3.ai (NYSE: AI) with a Market Outperform rating and a price target of $167.00.

The analyst comments "We view C3 as an excellent opportunity for long-term durable growth and capital appreciation for a number of reasons, including: 1) the leadership of Mr. Siebel who has four decades in the technology industry, including joining Oracle as one of the first sales executives in 1984[1] and then in 1993 founding Siebel Systems which achieved $1B in revenue in 2000 and $2B in 2001 and was eventually acquired in 2006 by Oracle for $5.8B; 2) C3’s focus on mission-critical artificial intelligence projects in the commercial industrial sector that have the potential to return “significant economic value within one year”[2] with long-term economic value that we have found is often measured in the hundreds of millions or even billions of dollars (Enel, for example, estimates the application of AI to its smart grid data will yield more than €600M in annual economic value[3]); 3) C3’s technology platform with modeldriven architecture that enables clients to develop and operate AI applications at scale, that can ingest and aggregate data from hundreds of millions of endpoints, and that addresses “persistence, event processing, machine learning, and visualization” [4]; 4) a remarkable enterprise sales capability that drives initial deal sizes of $13M, which subsequently expand 3x; 5) a massive market opportunity with an immediately addressable $18B TAM for enterprise AI, according to IDC, and additional potential in the $63B enterprise infrastructure and $93B enterprise applications markets, according to Gartner; and 6) a set of impressive partnerships that should supplement C3’s go-to-market capabilities over time, with companies like Baker Hughes, Microsoft, Adobe, Fidelity National Information Systems, and Raytheon."

For an analyst ratings summary and ratings history on C3.ai click here. For more ratings news on C3.ai click here.

Shares of C3.ai closed at $138.75 yesterday.

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