Analyst Bradley Sills of Bank of America Securities reiterated a Sell rating on UiPath, with a price target of $12.00.
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Bradley Sills has given his Sell rating due to a combination of factors impacting UiPath’s performance and outlook. Despite the company showing some improvement in execution, evidenced by a modest Q2 performance that slightly exceeded expectations, the overall growth and margin remain underwhelming. The company’s operation at a lackluster rule of 32, which combines growth and margin metrics, indicates that there is still significant room for improvement.
Furthermore, the priority of robotic process automation (RPA) has diminished among CIOs and business managers with the rise of agentic AI, reducing the potential for significant catalysts in the near term. Although the stock’s valuation appears reasonable compared to its peers, trading at 3.3 times the estimated 2026 revenue, the limited margin upside and lack of significant growth drivers contribute to the underperform rating. As a result, Sills maintains a price objective of $12, reflecting a cautious outlook on the stock’s future performance.
According to TipRanks, Sills is a 4-star analyst with an average return of 4.2% and a 48.34% success rate. Sills covers the Technology sector, focusing on stocks such as Microsoft, Salesforce, and CoreWeave.