BofA raises UiPath stock price target to $12, keeps underperform

Published 30/05/2025, 18:30
BofA raises UiPath stock price target to $12, keeps underperform

On Friday, BofA Securities analyst Brad Sills increased the price target on UiPath Inc. (NYSE:PATH) shares from $10.00 to $12.00 while maintaining an Underperform rating on the stock. Sills noted that the company’s first-quarter results showed more stable execution, which is a positive development following a period of uneven performance due to recent restructuring and changes in their go-to-market strategy. According to InvestingPro data, analyst targets for PATH range from $10 to $17, while the stock appears undervalued based on Fair Value analysis.

UiPath reported a Q1 Annual Recurring Revenue (ARR) of $1.693 billion, marking a year-over-year increase of 12%. This figure slightly surpassed BofA Securities’ projection of $1.69 billion. The growth was attributed to successful cloud offerings and a rising demand for the company’s new agentic capabilities, which attracted new enterprise customers. The company maintains impressive gross profit margins of 83% and shows strong financial health with a current ratio of 2.95x. InvestingPro analysis reveals 8 additional key insights about PATH’s financial position and growth prospects.

The analyst highlighted that currency fluctuations had a minimal incremental impact on the results, as the financial outlook was provided later in the reporting cycle, which could account for more accurate forecasting. Additionally, Sills pointed out that UiPath’s partner channel played a significant role in contributing to the company’s incremental growth.

UiPath’s enhanced performance and the subsequent price target increase reflect the company’s ability to navigate through the challenges posed by its internal changes and adapt to market demands. The updated price target suggests that while the analyst sees improvement, the Underperform rating indicates a cautious stance on the stock’s potential in comparison to the broader market.

In other recent news, UiPath Inc. reported financial results that exceeded expectations, with significant improvements in revenue and operating margins. The company’s first-quarter performance showed a 6% year-over-year revenue increase, and the Annual Recurring Revenue (ARR) surpassed forecasts. UiPath also announced a notable contract with the U.S. Air Force, contributing to its positive outlook for fiscal year 2026. Analysts from TD Cowen and RBC Capital Markets raised their price targets for UiPath to $15, acknowledging the company’s strong execution and improved financial guidance. Mizuho (NYSE:MFG) Securities also adjusted its price target to $14, noting the company’s progress in platform expansion and margin improvement.

Despite these positive developments, some analysts remain cautious. KeyBanc maintained a Sector Weight rating, citing the early stages of automation opportunities and macroeconomic concerns. Similarly, Needham kept a Hold rating, pointing out challenges such as a decrease in net new ARR and a decline in the net retention rate. These mixed analyst ratings reflect ongoing uncertainties regarding UiPath’s long-term growth amid fluctuating market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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