UiPath, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Radi Sultan from UBS maintained a Hold rating on the stock and has a $17.00 price target.
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Radi Sultan’s rating is based on a combination of factors including UiPath’s recent financial performance and market positioning. The company’s third-quarter results were slightly better than anticipated, with net new ARR showing a modest improvement. However, the outlook for future ARR growth remains uncertain, with estimates for FY27 ranging between 7% and 9%, which reflects a cautious stance on long-term growth prospects.
Additionally, competitive pressures and stable win rates against rivals like Microsoft and Automation Anywhere contribute to a balanced view of the stock. The company’s revenue and billing duration trends, alongside the normal renewal seasonality, suggest a stable but not overly optimistic growth trajectory. Given these factors and the current valuation, Radi Sultan maintains a Hold rating, indicating a neutral position on the stock’s potential for significant near-term appreciation.