UiPath stock price target raised to $15 at RBC Capital

Published 30/05/2025, 15:12
UiPath stock price target raised to $15 at RBC Capital

On Friday, RBC Capital Markets increased its price target on shares of UiPath Inc. (NYSE: NYSE:PATH) to $15.00, up from the previous $15.00, while maintaining a Sector Perform rating. With the stock currently trading at $13.21, analyst targets range from $10 to $17, reflecting mixed sentiment on Wall Street. The adjustment follows UiPath’s recent financial report, which showed stability in its quarterly performance despite a mixed conclusion to the fiscal year 2025.

UiPath, a leader in robotic process automation, exhibited performance that surpassed expectations in several key metrics, including an impressive 82.6% gross profit margin and strong liquidity with a current ratio of 2.95. The Federal business appeared stable, and the company’s renewal rates met projections. Despite the fluctuating macroeconomic environment, UiPath provided a more optimistic outlook for the fiscal year 2026, revising guidance figures upward. InvestingPro analysis shows the company maintains a GOOD overall financial health score, with particularly strong marks in growth and cash flow metrics.

The company’s management remains optimistic about UiPath’s potential in the automation space, particularly with the growing interest from customers. However, they anticipate that this will become a more significant factor for revenue in the fiscal year 2027.

RBC Capital’s analyst noted the macroeconomic variability as a reason for continued cautiousness in the guidance for the next fiscal year. Nevertheless, the raised price target reflects slightly higher estimates based on the company’s recent performance and outlook. The Sector Perform rating suggests that RBC Capital views UiPath as adequately valued at its current price, with the new price target representing an expectation of modest growth.

In other recent news, UiPath Inc. reported first-quarter results that exceeded expectations, with significant increases in both revenue and operating margins. The company’s Annual Recurring Revenue (ARR) also surpassed forecasts, prompting UiPath to adjust its full-year guidance upward. Several analyst firms responded to these developments by revising their outlooks on UiPath. Mizuho (NYSE:MFG) Securities raised its price target to $14 while maintaining a Neutral rating, citing strong execution and platform expansion. Similarly, BMO Capital Markets increased its price target to $15.50, reflecting a more optimistic view of the company’s deal pipeline and fiscal year 2026 guidance. DA Davidson also raised its price target to $14, acknowledging successful product launches and a major stock buyback, yet maintained a Neutral rating due to competitive challenges. Needham, however, held its Hold rating, noting a decrease in net new ARR and net retention rate, despite the positive financial results. KeyBanc reaffirmed a Sector Weight rating, emphasizing the early stages of automation opportunities and broader macroeconomic concerns.

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