Needham analyst Scott Berg has maintained their neutral stance on PATH stock, giving a Hold rating today.
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Scott Berg’s rating is based on a combination of factors that reflect both positive and cautious outlooks for UiPath. The company has shown signs of stabilization with its net revenue retention remaining steady, which is a positive indicator after a period of decline. However, the net new annual recurring revenue has decreased compared to the previous year, suggesting that while there is potential for improvement, challenges remain.
Furthermore, the guidance provided by UiPath suggests potential improvements in the second half of the fiscal year, yet similar companies often take time to overcome downsell dynamics before growth can reaccelerate. Although there is a positive outlook on agentic automation, it is expected that significant contributions to growth will not materialize until the latter half of fiscal year 2027. These factors combined lead to a Hold rating, indicating a balanced view of potential risks and opportunities.