Citigroup Upgrades UiPath (NYSE:PATH) to "Strong-Buy"

Key Points

• Citigroup upgraded UiPath to “strong buy” and set a $23 price target, while the broader analyst consensus remains “hold” with an average target of $16.75.
• UiPath’s latest quarter met EPS expectations and exceeded revenue forecasts, with revenue rising 13.3% year over year; however, weaker-than-expected forward guidance has weighed on the stock.
• Shares opened at $13.61 after falling 2.9%, while CEO Daniel Dines sold about 1.4 million shares worth $22.5 million. Insiders own 22.44% of the company, compared with 62.50% held by institutional investors.

UiPath (NYSE:PATH - Get Free Report) was upgraded by research analysts at Citigroup to a "strong-buy" rating in a research report issued on Tuesday, Zacks reports.

Several other analysts have also commented on PATH. Wall Street Zen lowered UiPath from a "buy" rating to a "hold" rating in a report on Saturday, May 30th. TD Cowen increased their target price on UiPath from $13.00 to $16.00 and gave the company a "hold" rating in a report on Friday, September 4th. Royal Bank Of Canada raised their target price on UiPath from $15.00 to $17.00 and gave the stock a "sector perform" rating in a research report on Friday, September 4th. BMO Capital Markets boosted their price target on UiPath from $13.00 to $18.00 and gave the company a "market perform" rating in a research note on Friday, September 4th. Finally, Bank of America upped their price target on shares of UiPath from $13.00 to $15.00 and gave the company an "underperform" rating in a research report on Friday, September 4th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $16.75.

UiPath Trading Down 2.9%

Shares of PATH stock opened at $13.61 on Tuesday. UiPath has a 12-month low of $9.20 and a 12-month high of $19.84. The firm's 50 day moving average is $14.11 and its 200 day moving average is $12.01. The stock has a market capitalization of $7.05 billion, a P/E ratio of 20.31, a P/E/G ratio of 1.55 and a beta of 1.02.

UiPath (NYSE:PATH - Get Free Report) last posted its earnings results on Thursday, September 3rd. The company reported $0.15 EPS for the quarter, hitting analysts' consensus estimates of $0.15. The business had revenue of $410.26 million during the quarter, compared to the consensus estimate of $397.77 million. UiPath had a net margin of 21.03% and a return on equity of 9.70%. The firm's revenue was up 13.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.15 EPS. As a group, equities analysts predict that UiPath will post 0.42 earnings per share for the current year.

Insider Activity

In other news, CEO Daniel Dines sold 1,402,347 shares of the company's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $16.07, for a total value of $22,535,716.29. Following the completion of the sale, the chief executive officer directly owned 26,491,238 shares in the company, valued at $425,714,194.66. This represents a 5.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 22.44% of the stock is currently owned by insiders.

Hedge Funds Weigh In On UiPath

A number of institutional investors have recently bought and sold shares of PATH. HighMark Wealth Management LLC purchased a new stake in UiPath in the fourth quarter worth about $25,000. Trifecta Capital Advisors LLC bought a new position in shares of UiPath in the second quarter worth about $27,000. Atlas Capital Advisors Inc. purchased a new position in shares of UiPath during the 4th quarter valued at about $37,000. AdvisorNet Financial Inc lifted its position in shares of UiPath by 750.0% during the 1st quarter. AdvisorNet Financial Inc now owns 3,400 shares of the company's stock valued at $38,000 after buying an additional 3,000 shares in the last quarter. Finally, REAP Financial Group LLC purchased a new position in shares of UiPath during the 4th quarter valued at about $44,000. 62.50% of the stock is owned by institutional investors.

Key Stories Impacting UiPath

Here are the key news stories impacting UiPath this week:

• Positive Sentiment: Citi initiated coverage of UiPath with a Buy rating and a $23 price target, implying substantial upside from recent trading levels. Analyst support may help establish a valuation floor following the post-earnings selloff. UiPath Slips 3% Despite Citi Buy Initiation and $23 Target
• Positive Sentiment: UiPath released a global survey highlighting enterprise demand for orchestration to move agentic-AI projects beyond pilot programs. The report supports the company’s positioning in workflow automation and AI deployment, although it does not provide a direct financial forecast. UiPath Survey Points to Orchestration as Key to Scaling Enterprise Deployments
• Positive Sentiment: UiPath also gained a new integration from Synthesized for automated test-data provisioning, potentially expanding the practical use of its platform in continuous software testing. Synthesized Launches UiPath Integration
• Negative Sentiment: The main catalyst for selling has been UiPath’s fiscal third-quarter revenue guidance: the midpoint reportedly fell short of Wall Street expectations. That outlook overshadowed a second-quarter revenue beat, stronger profitability, and raised full-year guidance. Why UiPath Stock Is Trading Lower
• Negative Sentiment: Analysts have raised price targets but remain cautious or hold-rated, signaling that investors want clearer evidence that AI features can accelerate revenue growth. This cautious response has extended the post-earnings selloff despite the company’s operational improvements. PATH Stock Wrapped Its Worst Week in Four Months

About UiPath

UiPath Inc provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric.

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