C3.ai (AI) stock is inching higher on Oct. 12 after Northland Capital identified a “new growth engine” it believes could unlock significant further upside over time. Analyst Michael Latimore upgraded the enterprise software company this morning to “Outperform” and raised his price target to $16, indicating potential upside of more than 40% on its previous close.
Northland’s bullish call is particularly significant since C3.ai shares are already trading about 53% above their year-to-date low.
What Made Northland Upgrade C3.ai Stock
Latimore’s upgrade rests heavily on the firm’s recently launched C3 Code, which he’s convinced can shorten the development of agentic AI applications from months to days. The platform is bullish for AI shares as it positions the company to onboard customers faster while encouraging existing clients to expand their use of its software, he added.
C3 Code lets users describe applications through natural-language instructions, with autonomous agents performing the development work. It also connects with existing enterprise systems and draws on C3.ai’s established infrastructure to support security and reliability.
For Northland, the appeal extends well beyond faster coding: reducing the effort required to deploy applications could give clients a clearer route from experimenting with AI to using it across their businesses.
What Else Could Drive AI Shares Higher?
Latimore is positive on C3.ai stock also because the firm’s Accelerator marketing program appears to be improving engagement.
Its first event brought together 110 participants from 46 companies, with business and IT personnel demonstrating that they could build enterprise-ready artificial intelligence applications within days. AI subsequently added three more events, providing further opportunities to showcase the platform to prospective customers.
Plus, Northland expects year-over-year comparisons to become easier beginning with the January quarter. That could make growth trends look more favorable as C3.ai works through its turnaround.
Wall Street’s View on C3.ai
Note that other Wall Street analysts are not nearly as bullish on the enterprise software firm, though.
According to Barchart, the consensus rating on AI stock sits at “Hold” only, with the mean price target of about $8.9 indicating significant downside potential from current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.