Needham analyst Scott Berg has maintained their neutral stance on PATH stock, giving a Hold rating today.
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Scott Berg has given his Hold rating due to a combination of factors impacting UiPath’s financial performance. The company’s fourth-quarter results did not meet expectations, primarily because of delays in deal closures within its US Federal segment. This uncertainty has also led to a conservative initial guidance for fiscal year 2026, which fell short of market estimates.
Despite these challenges, there are positive developments that could drive future growth. UiPath has seen a strong initial interest in its Agentic innovations, with customers actively using a significant number of its Agents. Additionally, the company is experiencing robust growth in its Cloud model, with annual recurring revenue increasing by over 50% year-over-year. This growth in the Cloud segment is expected to facilitate further adoption of AI innovations, providing a potential catalyst for the company’s future performance.
In another report released today, Barclays also maintained a Hold rating on the stock with a $12.00 price target.