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On Friday, BMO Capital Markets adjusted their outlook on UiPath Inc. (NYSE: NYSE:PATH), increasing the price target to $15.50, up from the previous target of $11.50, while keeping a Market Perform rating on the shares. According to InvestingPro data, UiPath, currently valued at $6.92 billion, shows promising fundamentals with an impressive gross profit margin of 83% and strong liquidity metrics. The revision follows UiPath’s first-quarter performance, which exceeded modest expectations and included a raised guidance for Annual Recurring Revenue (ARR) and revenue for the fiscal year 2026.
The company’s stronger-than-anticipated deal pipeline contributed to the upbeat forecast. UiPath’s management also expressed a renewed sense of optimism regarding the company’s momentum, particularly in the public sector, which had previously been a point of uncertainty. This optimism is supported by the company’s solid 9.3% revenue growth over the last twelve months and a healthy current ratio of 2.93, indicating strong operational efficiency.
BMO Capital’s analyst acknowledged the company’s recent accomplishments, stating, "PATH posted a solid Q1 against low expectations and raised guide for ARR and revenue for the remainder of FY26 highlighted by stronger deal pipeline." The analyst continued to explain the rationale behind the price target adjustment: "We are raising our target price to $15.50 and retain our Market Perform rating."
The statement from BMO Capital also left open the possibility of a more favorable view of UiPath’s stock in the future, contingent upon the company’s product diversification beyond its core Robotic Process Automation (RPA) offerings. "If we get more positive on the potential impact of products other than RPA, we could envision getting more constructive on the stock, though we have a ways to go before we reach such a conclusion," the analyst added.
The new price target of $15.50 reflects BMO Capital’s current valuation of UiPath’s stock based on the latest financial data and market conditions. The Market Perform rating suggests that the analyst believes the stock will perform in line with the overall market or its sector in the near future. InvestingPro analysis indicates that UiPath is currently fairly valued, with analyst targets ranging from $10 to $16.12. For deeper insights into UiPath’s valuation and growth prospects, including 8 additional exclusive ProTips and comprehensive financial analysis, check out the full Pro Research Report available on InvestingPro.
In other recent news, UiPath Inc. reported impressive first-quarter fiscal 2026 earnings, surpassing analyst expectations with an earnings per share of $0.11, exceeding the forecast of $0.10. The company’s revenue also outperformed projections, reaching $357 million compared to the anticipated $332.83 million. Annual Recurring Revenue (ARR) rose by 12% year-over-year to $1.693 billion, showcasing the company’s growth trajectory. Analysts at DA Davidson and Evercore ISI responded by raising their price targets to $14.00 and $15.00, respectively, although both firms maintained their current ratings on the stock. DA Davidson highlighted UiPath’s successful product launches and noted the company’s significant stock buyback, repurchasing approximately 4% of its stock. Meanwhile, Evercore ISI emphasized the need for UiPath to show consistent outperformance and stabilize its Net Revenue Retention to positively shift investor sentiment. Despite these achievements, UiPath acknowledged ongoing macroeconomic variability and competitive pressures, yet remains optimistic about future deal alignments in upcoming quarters.
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