Needham analyst Scott Berg has reiterated their neutral stance on PATH stock, giving a Hold rating today.
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Scott Berg has given his Hold rating due to a combination of factors that suggest cautious optimism about UiPath’s recent performance. The company reported strong third-quarter results, with net new annual recurring revenue (ARR) exceeding expectations and showing year-over-year growth for the first time in two years. This was accompanied by revenue and operating income surpassing estimates, driven by improved enterprise execution and robust license revenue from the federal sector.
Despite these positive indicators, Berg remains cautious, as he seeks to determine whether these improvements are sustainable or merely a temporary anomaly. While UiPath’s go-to-market strategy changes appear to be yielding positive results, and management’s guidance for the fourth quarter is optimistic, Berg prefers to maintain a Hold rating until there is clearer evidence of consistent performance beyond a single quarter.