Artificial intelligence (AI) applications company C3.ai (NYSE: AI) sold off 11.2% through 10:50 a.m. ET this morning after KeyBanc analyst Eric Heath downgraded the stock from sector weight to underweight -- which is to say, from hold to sell.

According to Heath, C3 shares that closed near $40 last night are actually worth closer to $29.

Valuation is key to KeyBanc's downgrade today. As Heath points out, even adjusted for cash on hand, C3 stock costs a staggering 13.3 times annual sales, or nearly twice the average valuation of its artificial intelligence peers (7.3 times sales).

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Source Fool.com