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Investing.com - TD Cowen reduced its price target on UiPath Inc. (NYSE:PATH) to $13.00 from $15.00 on Friday, while maintaining a Hold rating on the stock. According to InvestingPro data, the company currently trades at a market capitalization of $5.8 billion and shows strong financial health with an overall rating of GOOD.
The robotic process automation company delivered second-quarter results that exceeded analyst expectations, with annual recurring revenue, revenue, and adjusted operating income surpassing Street estimates by 0.3%, 4.1%, and 55% respectively. The company maintains impressive gross profit margins of 83% and has achieved revenue growth of 8.25% over the last twelve months.
UiPath’s third-quarter outlook also came in ahead of consensus estimates, with the company citing positive underlying momentum and favorable foreign exchange conditions supporting a stronger second-half outlook.
TD Cowen adjusted its price target to $13, representing 3.3x calendar year 2026 enterprise value-to-sales and 15x enterprise value-to-free cash flow, citing recent volatility in the enterprise software sector as the primary reason for the reduction.
Despite the price target cut, the research firm noted encouraging signs including federal purchasing behavior, early adoption of agentic capabilities, growth stabilization potential, and improved operational discipline supporting rising margins and free cash flow.
In other recent news, UiPath Inc. reported strong second-quarter fiscal 2026 results, demonstrating improved execution and outperformance across key metrics. The company delivered a modest annual recurring revenue (ARR) beat and raised its fiscal year 2026 ARR guidance to approximately 10.2% year-over-year growth. Despite facing a 30% year-over-year decline in net new ARR, UiPath reported $30 million in net new ARR, surpassing BMO Capital’s estimate of $25 million. Analysts have had varied responses to these developments. RBC Capital maintained its Sector Perform rating with a $12.00 price target, while KeyBanc kept its Sector Weight rating, noting signs of stabilization in the U.S. public sector business. Needham also reiterated a Hold rating, citing early signs of business stabilization and a stable net revenue retention rate. Meanwhile, BMO Capital lowered its price target to $12.50, and DA Davidson maintained a Neutral rating while reducing its price target to $12.00. These ratings reflect diverse perspectives on UiPath’s performance and future prospects.
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