Keith Bachman, an analyst from BMO Capital, maintained the Hold rating on UiPath (PATH – Research Report). The associated price target is $11.50.
Keith Bachman has given his Hold rating due to a combination of factors impacting UiPath’s performance and outlook. The company reported a disappointing quarter, missing both ARR and revenue estimates, and provided guidance for FY26 that suggests a back-end weighted growth, leading to a downward revision of future estimates. Concerns about UiPath’s sustainable growth rate are heightened by the competitive landscape, macroeconomic challenges, and potential risks in the public sector, which is a significant vertical for the company.
Management’s cautious tone regarding macroeconomic conditions, particularly the uncertainty in public sector budgets, adds to the concerns. The guidance for Q1 ARR and revenue was below expectations, with a notable decline in net new ARR, which raises questions about the company’s ability to achieve its projected growth in the latter half of FY26. Despite some positive aspects, such as the growth in cloud ARR, these challenges contribute to the Hold rating as the company navigates a difficult environment.
In another report released today, Barclays also maintained a Hold rating on the stock with a $12.00 price target.