TLDR
- Citi initiated coverage on UiPath (PATH) with a Buy rating and $23 price target
- PATH dropped 16% last week, its worst week in over four months
- Bank of America raised its price target to $15 but kept an Underperform rating
- Truist lifted its target to $17 and TD Cowen raised to $16, both maintaining Hold ratings
- Q2 revenue rose 13% to $410.26 million, beating estimates of $397.8 million
UiPath (PATH) got a vote of confidence from Citi on Tuesday, with the bank initiating coverage at Buy and setting a $23 price target. That follows a rough week for the stock, which fell 16% last week, its steepest drop in more than four months.
The stock edged 0.2% higher in Tuesday’s premarket. It is currently trading at a premium to peers, according to Zacks, which gives it a D on its Value Style Score.
Citi analyst Yitchuin Wang said the post-earnings selloff creates an attractive entry point. Wang’s view is that enterprise AI will require orchestration across agents, models, humans, APIs, and robots, with automation staying critical for governance and compliance.
Wall Street has broadly raised price targets following UiPath’s fiscal second-quarter results, but the upgrades come with reservations.
Analysts Raise Targets But Want AI Proof
Bank of America analyst Koji Ikeda lifted his price target to $15 from $13 but kept an Underperform rating. He said Q2 earnings did little to answer the key question: whether AI will actually speed up annual recurring revenue growth. BofA did adjust its model to reflect stronger margin expectations.
Truist raised its target to $17 from $12, holding at a neutral Hold rating. The firm sees more agentic AI deals and some improvement in customer growth, but says it needs to see faster growth before turning more positive.
TD Cowen raised its target to $16 from $13, also keeping a Hold. It flagged steady Q2 performance, stable customer retention, and growing AI use as positives.
DA Davidson’s Lucky Schreiner raised his target to $16 from $12, staying at Neutral. He noted UiPath beat ARR expectations and modestly lifted its fiscal 2027 ARR outlook.
Q2 Results Beat on Revenue
UiPath’s Q2 revenue came in at $410.26 million, up 13% year over year and above the $397.8 million analyst estimate. Adjusted EPS was $0.15, in line with expectations. Gross margin slipped to 80% from 82% a year ago.
On the earnings estimate front, UiPath is expected to post $0.19 per share for the current quarter, up 18.8% year over year. The current fiscal year consensus sits at $0.80 per share, up 11.1%.
Zacks rates PATH a #2 (Buy), pointing to steady earnings estimate trends despite the valuation premium.
Revenue estimates for the current quarter stand at $444.34 million, pointing to 8.1% growth year over year.
UiPath’s investor day is scheduled for September 22, where management is expected to lay out plans to drive higher growth.
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