TD Cowen analyst Bryan Bergin has maintained their neutral stance on PATH stock, giving a Hold rating on March 6.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bryan Bergin has given his Hold rating due to a combination of factors impacting UiPath’s performance and outlook. The company’s recent quarterly results were affected by broader macroeconomic uncertainties and specific dynamics related to the U.S. administration change, which led to lighter-than-expected ARR and revenue figures. This uncertainty has also clouded the company’s growth outlook for FY26, with a 3% miss in ARR and revenue projections.
Despite these challenges, UiPath has shown positive operational rigor, resulting in better-than-expected operating margins and stable free cash flow. However, the limited near-term visibility and the anticipated recovery in the second half of the year are expected to face significant scrutiny due to ongoing volatility. Additionally, while there has been healthy traction among larger customer cohorts, overall customer attrition remains a concern, and the shift towards cloud solutions is expected to weigh on revenue growth. These factors contribute to a cautious stance, justifying the Hold rating as investors await clearer signs of stabilization.
In another report released on March 6, Scotiabank also maintained a Hold rating on the stock with a $15.00 price target.