UiPath: Operational Momentum and Early AI Upside Tempered by Valuation and Macro Risks

BMO Capital analyst Keith Bachman maintained a Hold rating on UiPath on March 13 and set a price target of $14.00.

Claim 55% Off TipRanks

Keith Bachman has given his Hold rating due to a combination of factors, balancing improving fundamentals with valuation and macro risks. He acknowledges that UiPath closed the fiscal year ahead of guidance on several key measures, with net new ARR and total ARR trends signaling better execution and a more sustainable growth profile, and he modestly raises forward ARR and revenue estimates accordingly.

At the same time, he sees the AI monetization story as still early and believes investors will want more proof of durable AI-driven revenue before re-rating the shares, which contributes to a lowered target price. While he remains positive on UiPath’s technology, market positioning, and the long-term potential of the RPA segment, his Market Perform stance reflects concern that higher inflation and interest-rate pressures will constrain multiple expansion for longer-duration growth assets like UiPath, tempering upside despite the operational progress.

In another report released on March 13, Morgan Stanley also assigned a Hold rating to the stock with a $17.00 price target.