Canaccord upgrades UiPath to Buy on guidance conservatism

Canaccord upgraded UiPath to Buy from Hold with a price target of $19, up from $14.50, post the Q4 results. The company closed out fiscal 2023 "with strength," posting significant upside to annual recurring revenue and EBIT guidance, the analyst tells investors in a research note. The firm says UiPath has made "significant strides" in realigning its sales force to more effectively target enterprise and midmarket accounts with high propensities to increase spend. It now sees a "Rule of 30" business next year despite currency and commission accounting headwinds. Given the conservatism in the guidance around macro and sales force realignment, the stock’s risk is skewed to the upside, writes Canaccord.