Why UBS Is Still on the Sidelines With C3.ai (AI) Despite a Higher Target

Core Viewpoint - C3.ai, Inc. is facing challenges in visibility regarding FY27 growth, with UBS maintaining a Neutral rating and raising the price target to $17.00 from $16.00, while projecting a 16.5% growth rate [1][5] Group 1: Financial Performance - The company's Q1 weakness is attributed to execution failures on several large deals rather than widespread customer weakness [2][5] - The FY26 revenue framework is set at $290-300 million, reflecting a conservative approach, but the estimate remains unchanged due to uncertainties such as a significant Q1 miss, a new CEO, and go-to-market changes [3][5] Group 2: Management and Strategy - The new CFO has not yet finalized an overhaul plan, which raises concerns about potential disruptions in the upcoming quarters [4][5] - The new CEO's lack of a finalized plan is seen as critical for determining the company's performance in the second half of FY26 and FY27 [5]