Raimo Lenschow, an analyst from Barclays, maintained the Hold rating on UiPath (PATH – Research Report). The associated price target is $25.00.
Raimo Lenschow’s rating is based on UiPath’s performance, which exhibits improved execution in a stable yet dynamic macroeconomic environment. The company’s revenue exceeded expectations due to strong license sales, and disciplined cost management led to notable profitability. The outperformance in cash flow and forward guidance also stands out, suggesting a promising future for long-term investors. However, the rate of new customer acquisition has shown a slight decline for the second consecutive quarter, which is an area that requires ongoing attention, even though this is in line with the company’s strategy of focusing on larger clients that are more likely to invest.
Lenschow acknowledges UiPath’s first instance of GAAP profitability, which is a significant milestone and a positive sign for investors. Despite these strong results, including a year-over-year increase in Annual Recurring Revenue (ARR) and a total revenue beat, Lenschow maintains a Hold rating. This cautious stance is due to the current valuation levels, which he sees as limiting significant upside potential. His analysis indicates that while UiPath is executing well and has potential growth avenues, the current market price may already reflect these positives, leaving limited room for stock appreciation in the near term.
Lenschow covers the Technology sector, focusing on stocks such as Microsoft, Pegasystems, and Salesforce. According to TipRanks, Lenschow has an average return of 4.5% and a 51.86% success rate on recommended stocks.
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UiPath (PATH) Company Description:
UiPath Inc creates an end-to-end platform that provides automation with user emulation at its core. Its platform is built to be used by employees throughout a company and to address a wide variety of use cases, from simple tasks to long-running, complex business processes. It generates revenue from the sale of licenses for its proprietary software, maintenance and support, and professional services. It generates a majority of the revenues from the US, followed by Romania and the rest of the world.
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