Morgan Stanley Has Lowered Expectations for UiPath (NYSE:PATH) Stock Price

Key Points

• Morgan Stanley lowered its price target on UiPath from $17 to $15 while keeping an equal weight rating, though that still implies about 28% upside from the current share price.
• Broader analyst sentiment remains cautious: the stock has mostly Hold ratings overall, and MarketBeat shows a consensus target of $13.93.
• UiPath’s latest quarter showed solid operating momentum, with revenue of $418.4 million up 17.3% year over year and EPS matching estimates at $0.15.

UiPath (NYSE:PATH - Get Free Report) had its price target reduced by equities researchers at Morgan Stanley from $17.00 to $15.00 in a report issued on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's target price would suggest a potential upside of 28.04% from the stock's current price.

PATH has been the topic of a number of other research reports. Needham & Company LLC reiterated a "buy" rating and set a $15.00 price target on shares of UiPath in a research note on Friday. Truist Financial reduced their target price on shares of UiPath from $17.00 to $12.00 and set a "hold" rating on the stock in a research note on Thursday, March 12th. Wall Street Zen cut UiPath from a "strong-buy" rating to a "buy" rating in a report on Saturday, March 28th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of UiPath in a report on Friday, March 27th. Finally, Bank of America reaffirmed an "underperform" rating on shares of UiPath in a report on Friday. Two equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $13.93.

UiPath Stock Up 1.2%

Shares of NYSE:PATH traded up $0.14 during trading on Friday, reaching $11.72. The stock had a trading volume of 31,406,078 shares, compared to its average volume of 32,027,912. UiPath has a 52 week low of $9.20 and a 52 week high of $19.84. The stock has a fifty day simple moving average of $10.74 and a two-hundred day simple moving average of $12.91. The firm has a market capitalization of $6.14 billion, a price-to-earnings ratio of 22.38, a P/E/G ratio of 1.83 and a beta of 0.91.

UiPath (NYSE:PATH - Get Free Report) last announced its earnings results on Thursday, May 28th. The company reported $0.15 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.15. UiPath had a net margin of 17.53% and a return on equity of 5.69%. The business had revenue of $418.38 million for the quarter, compared to analyst estimates of $397.54 million. During the same quarter in the previous year, the firm posted $0.11 earnings per share. UiPath's revenue was up 17.3% compared to the same quarter last year. On average, analysts forecast that UiPath will post 0.32 EPS for the current year.

Institutional Trading of UiPath

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. increased its stake in shares of UiPath by 2.5% in the 4th quarter. Vanguard Group Inc. now owns 49,114,941 shares of the company's stock valued at $804,994,000 after acquiring an additional 1,219,057 shares during the last quarter. State Street Corp grew its position in shares of UiPath by 66.4% in the 4th quarter. State Street Corp now owns 13,004,786 shares of the company's stock valued at $213,148,000 after purchasing an additional 5,189,438 shares during the period. AQR Capital Management LLC grew its position in shares of UiPath by 76.0% in the 2nd quarter. AQR Capital Management LLC now owns 11,407,569 shares of the company's stock valued at $145,732,000 after purchasing an additional 4,926,341 shares during the period. Bank of America Corp DE grew its position in shares of UiPath by 13.2% in the 1st quarter. Bank of America Corp DE now owns 10,046,699 shares of the company's stock valued at $111,518,000 after purchasing an additional 1,170,285 shares during the period. Finally, Morgan Stanley grew its position in shares of UiPath by 54.0% in the 4th quarter. Morgan Stanley now owns 9,310,304 shares of the company's stock valued at $152,596,000 after purchasing an additional 3,262,930 shares during the period. 62.50% of the stock is owned by institutional investors.

Trending Headlines about UiPath

Here are the key news stories impacting UiPath this week:

• Positive Sentiment: Needham & Company reaffirmed its Buy rating on UiPath and set a $15 price target, implying meaningful upside from current levels. Benzinga article
• Positive Sentiment: UiPath reported Q1 revenue of $418.4 million, above Wall Street estimates, with sales rising 17.3% year over year, signaling continued demand for its automation software and AI products. Yahoo Finance article
• Positive Sentiment: The company also said it achieved first-time GAAP profitability, a notable milestone that may improve investor confidence in UiPath’s ability to scale profitably. Yahoo Finance article
• Positive Sentiment: UiPath’s updated guidance for Q2 revenue of $395 million to $400 million and full-year revenue of about $1.8 billion was broadly in line with expectations, reducing concern over a near-term slowdown. Business Wire article
• Positive Sentiment: Trading activity also looked bullish, with unusually heavy call-option buying and reports that shares were rising ahead of earnings, suggesting traders were positioning for upside. American Banking News article
• Neutral Sentiment: UiPath’s Q1 non-GAAP EPS of $0.15 matched expectations, so the stock reaction is being driven more by revenue growth, profitability progress, and guidance than by a major earnings beat. Yahoo Finance article

UiPath Company Profile

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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