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UiPath’s Promising AI Growth and Market Challenges Lead to Hold Rating

UiPath’s Promising AI Growth and Market Challenges Lead to Hold Rating

William Blair analyst Jake Roberge has maintained their neutral stance on PATH stock, giving a Hold rating today.

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Jake Roberge has given his Hold rating due to a combination of factors including UiPath’s solid quarterly performance and the promising early demand for its AI solutions. The company reported a notable revenue growth of 6%, surpassing expectations, and demonstrated strong user engagement with its AI tools like AgentBuilder and AutoPilot. However, despite these positive developments, the company does not anticipate significant revenue contributions from its AI initiatives until fiscal 2027.
Moreover, while UiPath’s recent go-to-market changes have led to stabilization, new bookings are still facing pressure due to procurement delays. Although the management has raised its full-year revenue growth outlook to 9% and improved operating margin expectations, they remain cautious due to macroeconomic uncertainties and risks associated with DOGE. These factors collectively contribute to the Hold rating, reflecting a balanced view of potential growth and existing challenges.

In another report released today, Barclays also maintained a Hold rating on the stock with a $14.00 price target.

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