Despite surging nearly 80% this year, Wolfe Research expects slowing growth concerns to weigh on C3.ai in the months ahead. Analyst Joshua Tilton downgraded the popular artificial intelligence stock benefitting from the push toward generative AI , citing risks to long-term growth expectations.
A recent change in its agreement with Baker Hughes also means that revenues outside of the oil field services company will need to be "materially higher than what has been realized this year," Tilton said. To hit 20% consensus 2024 revenue growth forecasts, the analyst also estimates that C3.ai would need to grow revenues unrelated to Baker Hughes by 28.3%, representing the largest year-over-year increase on record.