TD Cowen raises UiPath stock price target to $15 from $12

On Friday, TD Cowen analyst Bryan Bergin updated his outlook on UiPath Inc. (NYSE: NYSE:PATH), increasing the price target to $15.00 from the previous $12.00 while maintaining a Hold rating on the stock. Bergin acknowledged the company’s performance, stating that the first-quarter results surpassed expectations and that the second-quarter and revised full-year 2026 forecasts are ahead of Wall Street’s predictions. The revenue and EBIT figures for UiPath were noted to show healthy outperformance, with Annual Recurring Revenue (ARR) slightly above estimates. Additionally, the adjusted Free Cash Flow (FCF) forecast was reaffirmed. The company’s strong performance is reflected in its impressive 82.64% gross profit margins and healthy current ratio of 2.95. According to InvestingPro analysis, UiPath’s overall financial health score is rated as GOOD, with particularly strong metrics in growth and cash flow management.

Bergin’s commentary highlighted UiPath’s improved execution, which he found encouraging. However, he also pointed out that there are still numerous questions concerning the company’s future. These uncertainties include the effects of cyclical changes and Federal Reserve policies, the assimilation of organizational changes, and long-term structural considerations in a world increasingly influenced by automation and artificial intelligence. While the company is not currently profitable, InvestingPro data reveals that analysts expect profitability this year, with revenue growth forecast at 7% for FY2026. InvestingPro subscribers have access to 8 additional key insights about UiPath’s financial outlook and market position.

The analyst’s revised estimates suggest a more optimistic view of UiPath’s financial trajectory. Despite the positive adjustment to the price target, the Hold rating indicates a cautious stance on the stock’s potential for growth amid the noted uncertainties. Based on comprehensive Fair Value analysis from InvestingPro, UiPath appears to be trading near its Fair Value, with analyst targets ranging from $10 to $17 per share.

UiPath’s stock price adjustment reflects the company’s recent performance, which has demonstrated an ability to outperform market expectations. Bergin’s analysis suggests that while UiPath is navigating its challenges effectively in the short term, the long-term outlook remains clouded by broader economic and industry-specific factors.

The new price target of $15.00 set by TD Cowen offers investors a revised benchmark for evaluating the company’s market value. UiPath’s ongoing efforts to address the challenges outlined by the analyst will be crucial in determining the company’s ability to sustain its current performance and justify this updated valuation.

In other recent news, UiPath Inc. reported first-quarter results that exceeded expectations, with revenue growing by 6% year-over-year and operating margins reaching 20%, surpassing consensus estimates. The company has adjusted its full-year guidance upward, reflecting a more optimistic outlook, particularly after securing a significant contract with the U.S. Air Force. Analysts have responded to these results with various adjustments to their price targets. RBC Capital increased its target to $15 while maintaining a Sector Perform rating, citing stability in UiPath’s federal business and revised guidance figures. Mizuho (NYSE:MFG) Securities raised its price target to $14, maintaining a Neutral rating, emphasizing the company’s platform expansion and margin improvement. BMO Capital Markets also raised its target to $15.50, keeping a Market Perform rating, highlighting the stronger-than-anticipated deal pipeline. Meanwhile, KeyBanc maintained a Sector Weight rating, noting the early stage of automation opportunities despite UiPath’s positive trajectory. Needham held its Hold rating, pointing to a decline in key metrics like the net retention rate despite robust license revenue.

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