By Ghazal Ahmed

C3.ai, Inc. (NYSE:AI) is one of the AI Stocks on the Market’s Radar. On December 4, Citizens analyst Patrick Walravens reiterated a “Market Outperform” rating on the stock with a $24.00 price target. The firm is optimistic on the stock, driven by C3.ai’s long-term capital appreciation potential.

Citizens has highlighted C3.ai’s broad portfolio of industry-specific AI and GenAI applications, particularly in predictive maintenance and supply chain solutions. The company’s robust partnership with Microsoft was also highlighted, having yielded “100 customer agreements across 17 industries” and 24 joint agreements in the fiscal second quarter alone.

Citizens Stays Bullish on C3.ai (AI) Highlighting Microsoft Partnership and GenAI Demand. Insider Monkey

Certain challenges also exist for C3.ai, such as substantial business decline in the first fiscal quarter and a leadership transition to CEO Stephen Ehikian after founder Thomas Siebel’s departed due to health-related reasons.

However, the firm remains optimistic about the company’s prospects.

C3.ai has secured an 89% year-over-year increase in federal bookings during the second fiscal quarter, which it achieved despite the government shutdown. Citizens also cited  a Reuters report which pointed to the company’s potential as an acquisition target, stating that the company “is exploring a potential sale” though “the sale process is in its early stages and other options are on the table.”

With more cash than debt and a good current ratio, C3AI could make an attractive acquisition target.

C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation.

While we acknowledge the potential of AI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks Making Headlines on Wall Street and 12 Must-Watch AI Stocks on Wall Street.  Disclosure: None.