UiPath (PATH – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Kingsley Crane from Canaccord Genuity maintained a Buy rating on the stock and has a $30.00 price target.
Kingsley Crane has given his Buy rating due to a combination of factors including UiPath’s impressive financial performance and strategic positioning within the market. In comparison to other software companies that have struggled in the current earnings cycle, UiPath has outperformed expectations with their Q4 results and FY25 guidance. Their guidance not only beats consensus but also suggests robust growth in Annual Recurring Revenue (ARR) and EBIT margins. The company’s significant improvement in EBIT margins last year, alongside a strong forecast despite expected gross margin contraction, positions UiPath to potentially meet the criteria of the Rule of 40, which is a benchmark for the balance of growth and profitability in tech companies.
Additionally, Crane’s optimism is bolstered by UiPath’s expanding cloud ARR, successful product innovations, and deep embedding of AI across its platform. Their leadership in high-value segments like AI-powered automation and the consistent delivery of actionable results have solidified UiPath’s competitive edge. Management’s forward-looking statements regarding the integration of Large Language Model (LLM) technology into their products further enhance the company’s appeal. UiPath’s end-to-end automation capabilities, coupled with the potential to maintain Rule of 35+ status in the coming years, underpin Crane’s raised price target. The company’s strong revenue growth, profitability, and customer retention within larger accounts contribute to this positive outlook.
In another report released yesterday, TD Cowen also assigned a Buy rating to the stock with a $28.00 price target.
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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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