Key Takeaways
- Citi launched coverage of UiPath (PATH) with a Buy recommendation and $23 price objective
- The stock plummeted 16% over the past week, marking its worst performance since mid-2024
- Bank of America increased its price objective to $15 while maintaining an Underperform stance
- Truist upgraded its target to $17 and TD Cowen moved to $16, both keeping Hold recommendations
- Second-quarter revenue climbed 13% to $410.26 million, surpassing Wall Street’s $397.8 million projection
UiPath (PATH) received a bullish endorsement from Citi analysts on Tuesday, as the financial institution launched coverage with a Buy recommendation and established a $23 price objective. This optimistic outlook arrives after a challenging period for the automation software company, whose shares tumbled 16% during the previous weekārepresenting its most significant weekly decline in over four months.
During Tuesday’s premarket session, the stock showed modest strength, climbing 0.2%. According to Zacks Investment Research, PATH currently trades at elevated multiples relative to industry competitors, earning a D grade on the firm’s Value Style Score assessment.
Citi’s equity analyst Yitchuin Wang characterized the post-earnings decline as presenting a compelling buying opportunity. Wang’s investment thesis centers on the premise that enterprise artificial intelligence implementations will necessitate coordination among agents, machine learning models, human workers, application programming interfaces, and robotic systems, with automation remaining essential for maintaining governance frameworks and regulatory compliance.
Following UiPath’s latest quarterly financial report, numerous Wall Street firms have adjusted their price projections upward, though these revisions are accompanied by notable caution.
Street Raises Price Objectives While Seeking AI Revenue Evidence
Bank of America’s Koji Ikeda elevated his price objective to $15 from a previous $13 while retaining an Underperform recommendation. Ikeda noted that the second-quarter results failed to provide conclusive evidence addressing the fundamental question: will artificial intelligence capabilities actually accelerate annual recurring revenue expansion? The firm did, however, modify its financial model to incorporate improved profitability margin projections.
Truist Securities increased its price target to $17 from $12 while maintaining a Hold rating. The investment bank acknowledges progress in agentic AI transactions and modest customer base expansion, but emphasizes the need for demonstrable revenue acceleration before adopting a more constructive stance.
TD Cowen elevated its target to $16 from $13, likewise preserving a Hold rating. The firm highlighted consistent second-quarter execution, stable customer retention metrics, and expanding artificial intelligence adoption as encouraging developments.
DA Davidson analyst Lucky Schreiner raised his price objective to $16 from $12 while staying at a Neutral rating. Schreiner observed that UiPath exceeded annual recurring revenue projections and modestly increased its fiscal 2027 ARR guidance.
Second Quarter Performance Exceeds Revenue Expectations
UiPath’s second-quarter revenue reached $410.26 million, representing a 13% year-over-year increase and exceeding the analyst consensus estimate of $397.8 million. Adjusted earnings per share came in at $0.15, matching Wall Street projections. Gross profit margin declined to 80% from 82% in the comparable year-ago period.
Looking at earnings forecasts, analysts project UiPath will deliver $0.19 per share for the upcoming quarter, representing an 18.8% year-over-year improvement. The full-year consensus estimate stands at $0.80 per share, indicating 11.1% growth.
Zacks assigns PATH a #2 (Buy) ranking, citing consistent earnings estimate momentum despite the stock’s valuation premium relative to peers.
Revenue projections for the upcoming quarter total $444.34 million, suggesting 8.1% year-over-year expansion.
The company has scheduled its investor day for September 22, when executive leadership is anticipated to present strategic initiatives aimed at accelerating revenue growth.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
