Morgan Stanley analyst Sanjit Singh has maintained their neutral stance on PATH stock, giving a Hold rating today.
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Sanjit Singh has given his Hold rating due to a combination of factors impacting UiPath’s financial outlook. The company’s recent performance has been affected by extended procurement cycles and delayed deals, particularly within its U.S. Federal sector, which is a significant revenue stream. This resulted in a Q4 ARR that fell short of expectations, marking a notable year-over-year decline.
Furthermore, the broader economic environment is contributing to a cautious spending atmosphere, leading to a conservative growth forecast for FY26 that falls below market consensus. Despite these challenges, there are positive signs such as an improving margin outlook and potential growth opportunities with the upcoming release of AI agents. However, the current valuation remains reasonable, and signs of stabilization in net-new ARR are needed for a more optimistic outlook.
In another report released today, Barclays also maintained a Hold rating on the stock with a $12.00 price target.