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On Friday, DA Davidson increased the price target for UiPath Inc. (NYSE:PATH) from $11.00 to $14.00, while keeping a Neutral rating on the shares. The adjustment follows UiPath’s impressive performance in the first quarter of fiscal year 2026, which included robust outperformance and a positive shift in business sentiment. According to InvestingPro data, the company maintains impressive gross profit margins of 83% and holds more cash than debt on its balance sheet, demonstrating strong financial fundamentals.
Analysts at DA Davidson highlighted UiPath’s successful major Agentic product launches as a key factor in the decision to raise the price target. The company’s execution on product development and go-to-market strategies was noted as solid, reflecting the company’s ability to navigate the competitive landscape effectively.
Furthermore, UiPath was recognized for executing one of the largest buybacks in the current reporting season, repurchasing approximately 4% of the company’s stock. This move underscores the company’s confidence in its growth trajectory and commitment to delivering value to shareholders. The company’s strong financial position is reflected in its healthy current ratio of 2.93x and minimal debt-to-equity ratio of 0.04.
Despite the positive developments, DA Davidson analysts pointed out that UiPath still faces competitive challenges and softness in net revenue retention (NRR). These factors contribute to the firm’s decision to maintain a Neutral rating on the stock at this time.
The raised price target and continued Neutral rating come in the wake of UiPath’s F1Q26 results, which have been well-received by the market. Investors will be watching closely to see how the company’s strategic initiatives and product advancements will translate into long-term financial performance. Based on InvestingPro analysis, UiPath appears slightly undervalued at current levels, with analysts setting price targets ranging from $10.00 to $16.12. For deeper insights into UiPath’s valuation and growth prospects, including additional ProTips and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, UiPath Inc. reported impressive first-quarter fiscal 2026 earnings, significantly surpassing analyst expectations. The company achieved an earnings per share of $0.11, exceeding the forecast of $0.10, and reported revenue of $357 million, which was higher than the expected $332.83 million. UiPath’s Annual Recurring Revenue (ARR) rose to $1.693 billion, marking a 12% increase from the previous year. The company’s operating margins reached 20%, outperforming the anticipated 13%.
Additionally, Evercore ISI analyst Kirk Materne adjusted the price target for UiPath to $15.00 from $11.00, maintaining an In Line rating. This followed UiPath’s strong quarterly performance, which exceeded both the firm’s and the Street’s expectations. Furthermore, UiPath’s management expressed optimism about future deal alignments between the second and third quarters, despite ongoing macroeconomic variability.
The company also highlighted strategic partnerships and product innovations as key drivers of its performance. UiPath repurchased 21.9 million shares at an average price of $10.40, demonstrating its commitment to delivering value to shareholders. Looking ahead, UiPath projects second-quarter revenue between $345 million and $350 million, with full-year revenue guidance set at $1.549 billion to $1.554 billion.
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