TD Cowen analyst Bryan Bergin maintained a Hold rating on UiPath yesterday and set a price target of $13.00.
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Bryan Bergin’s rating is based on a combination of factors that reflect both positive developments and ongoing uncertainties for UiPath. The company has shown strong quarterly results, with revenue and annual recurring revenue growth exceeding expectations. This positive momentum is further supported by favorable foreign exchange impacts and a more optimistic outlook for the second half of the fiscal year. However, despite these encouraging signs, there are still questions regarding the company’s normalized growth trajectory and its competitive positioning in the rapidly evolving AI market.
Additionally, while the restructuring efforts have led to improved execution and stability, the overall demand environment remains variable. The company’s net retention rates have stabilized, and there is potential for recovery in incremental annual recurring revenue, but the client base has not significantly expanded. These mixed signals have led Bergin to adjust the price target and maintain a Hold rating, as the market continues to assess the implications of these factors on UiPath’s long-term growth and profitability.
Bergin covers the Technology sector, focusing on stocks such as Genpact, Block, and Automatic Data Processing. According to TipRanks, Bergin has an average return of 0.6% and a 47.01% success rate on recommended stocks.
In another report released on August 21, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $12.00 price target.