C3.ai (AI.US) stock jumped over 20% today D.A. Davidson upgraded the software company to 'Buy' rating with a $30 price target. Analysts described the company's products as 'truly scarce assets' and believe that the company can gain more from the development of artificial intelligence than Microsoft itself, because its portfolio is fully focused on the development of this technology. A few days ago, the company announced that it intends to integrate ChatGPT with its own AI products:
Analysts compared the company's generative AI as a potential 'killer app' changing the face of the tech industry, similar to what Office did for Windows;
D.A Davidson expects that the technology owned by C3.ai can change the face of the application and help it monetize significant investments in artificial intelligence;
According to analysts, the company's product from the so-called generative artificial intelligence segment may be a milestone and the company is positioning itself to implement its solutions on the market;
The company's P/B ratio stands around 2, significantly below technology industry average, however, P/S ratio is over 8 points and beats Apple or Tesla, which potentially indicates a significant premium in the valuation. The company's debt to assets ratio is lower than the average among technology companies and in Q3 2022 it amounted to 0.16, which shows a relatively low level of debt.
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C3ai (AI.US), D1 interval. The companybroke above all key technical resistances and is heading towards highs from November 2021. However, the RSI indicator entered an extreme overbought level around 88 points, which may lead to potential downward correction if market sentiment deteriorates. Source: xStation5