Morgan Stanley Lowers UiPath Price Target Amid Modest Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy PATH?
Source: stocktwits
- Price Target Revision: Morgan Stanley analyst Sanjit Singh lowered UiPath's price target from $19 to $17, reflecting a cautious outlook on the company's future growth, as fourth-quarter results met expectations but analysts see limited near-term upside.
- UBS Target Cut: UBS reduced its price target for UiPath from $17 to $13 while maintaining a 'Neutral' rating, noting that although the company projects a 9% revenue growth for fiscal 2027, the ongoing weakness in new business momentum raises concerns about its future prospects.
- Market Sentiment Shift: Despite UiPath's stock trading over 6% lower in Thursday's premarket, retail sentiment on Stocktwits remained in the 'extremely bullish' territory, with message volume shifting from 'high' to 'extremely high' within 24 hours, indicating strong retail interest.
- Annual Revenue Outlook: UiPath anticipates an 11% growth in annual recurring revenue for fiscal 2027, and while this slightly exceeds some investor expectations, analysts highlight that constant-currency net new annual recurring revenue has yet to show meaningful expansion, indicating subdued new business generation momentum.
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Analyst Views on PATH
Wall Street analysts forecast PATH stock price to rise
18 Analyst Rating
2 Buy
15 Hold
1 Sell
Hold
Current: 12.380
Low
14.00
Averages
16.54
High
19.00
Current: 12.380
Low
14.00
Averages
16.54
High
19.00
About PATH
UiPath, Inc. is an enterprise automation and artificial intelligence (AI) software company. The Company is focused on building and managing automations, starting with computer vision technology and user interface automations in its initial robotic process automation (RPA) offering. Its AI-powered UiPath Platform offers a robust set of capabilities that allows its customers to discover opportunities for automation, automate using a digital workforce that seamlessly collaborates with humans, and operate a mission critical automation program at scale. It enables employees to quickly build automations for both existing and new processes and to automate an array of actions, including logging into applications, extracting information from documents, moving folders, filling in forms, reading emails, and updating information fields and databases. Its platform allows users to design and combine UI automations, API integrations, and AI-based document understanding in a single workflow.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UiPath Reports Q4 Earnings Exceeding Expectations
- Strong Earnings Report: UiPath reported Q4 fiscal 2026 revenue of $481.11 million, surpassing estimates of $464.49 million, with adjusted earnings per share of $0.30 exceeding the $0.26 forecast, indicating robust financial performance.
- Significant Annual Growth: The company experienced a 14% year-over-year revenue increase, with annual recurring revenue reaching $1.85 billion, an 11% rise year-over-year, reflecting sustained growth and demand in the enterprise AI sector.
- Healthy Cash Flow: UiPath generated adjusted free cash flow of $182 million in the quarter, ending with $1.69 billion in cash, cash equivalents, and marketable securities, enhancing financial flexibility and investment capacity.
- Expanded Buyback Program: The company completed its previously authorized stock buyback program and received board approval for a new repurchase plan of up to $500 million, demonstrating confidence in future growth and commitment to shareholders.
See More
UiPath Achieves AIUC 1 Certification, Enhancing Market Trust
- AIUC 1 Certification Milestone: UiPath has become the first enterprise automation platform to achieve AIUC 1 certification after undergoing over 2000 technical evaluations, enhancing the security and reliability of its AI agents, which is expected to boost client trust in its automation solutions.
- Upcoming Earnings Report: UiPath is set to release its fourth-quarter earnings on March 11, with analysts forecasting earnings per share of $0.20, down from $0.26 a year earlier, and a revenue estimate of $464.49 million, indicating pressure on the company's revenue growth.
- Short-Term Strength vs. Long-Term Struggles: While UiPath's stock is currently trading 8.8% above its 20-day simple moving average, it remains 16.3% below its 100-day moving average, reflecting short-term strength but long-term challenges, with a modest 3.17% increase over the past year.
- Significant ETF Influence: UiPath holds substantial weight in key ETFs such as XOVR and WCLD, at 4.20% and 2.12% respectively, suggesting that significant inflows or outflows could directly impact its stock price, further influencing market performance.
See More
UiPath Reports Strong Quarter but Cautious Guidance Pressures Shares
- Earnings Beat: UiPath reported fourth-quarter revenue of $481.11 million, exceeding analyst expectations of $464.49 million, indicating strong market performance; however, cautious guidance from management has pressured the stock price.
- Profitability Outlook: The company expects fiscal 2027 revenue to range between $1.754 billion and $1.759 billion, while first-quarter revenue is projected between $395 million and $400 million, reflecting a cautious stance on future growth.
- AI Product Growth: UiPath's AI product ARR reached nearly $200 million, with 16 of the company's 20 largest deals including AI products, indicating that enterprises are expanding AI within existing workflows rather than replacing unattended automation.
- Analyst Rating Changes: Needham analyst upgraded UiPath's rating from Hold to Buy with a price target of $15, reflecting confidence in improving net new ARR growth and strong free cash flow, while D.A. Davidson and Wells Fargo maintained Neutral ratings with targets of $13 each.
See More
UiPath Q4 Earnings Analysis and Rating Adjustments
- Earnings Performance: UiPath reported a 15% increase in net new annual recurring revenue (NN ARR) for Q4 FY2026, despite a 10% drop in stock price during early trading, indicating stable execution and potential return to growth.
- Analyst Rating Adjustments: Needham upgraded UiPath's rating from Hold to Buy with a price target of $15, suggesting that the current stock price decline presents a buying opportunity for investors, despite market confusion regarding Workfusion's impact.
- Financial Highlights: Wells Fargo maintained an Equal Weight rating but lowered its price target to $13, emphasizing that the company achieved $150 million in operating income with a 31% operating margin in Q4, exceeding expectations, and projected FY27 operating income and free cash flow slightly above consensus estimates.
- AI Product Growth: UiPath's annual recurring revenue from AI products has reached $200 million, with a 25% increase in customers spending over $100,000 on AI solutions, reflecting a growing demand for enterprise AI solutions as adoption accelerates.
See More
Morgan Stanley Lowers UiPath Price Target Amid Modest Growth
- Price Target Revision: Morgan Stanley analyst Sanjit Singh lowered UiPath's price target from $19 to $17, reflecting a cautious outlook on the company's future growth, as fourth-quarter results met expectations but analysts see limited near-term upside.
- UBS Target Cut: UBS reduced its price target for UiPath from $17 to $13 while maintaining a 'Neutral' rating, noting that although the company projects a 9% revenue growth for fiscal 2027, the ongoing weakness in new business momentum raises concerns about its future prospects.
- Market Sentiment Shift: Despite UiPath's stock trading over 6% lower in Thursday's premarket, retail sentiment on Stocktwits remained in the 'extremely bullish' territory, with message volume shifting from 'high' to 'extremely high' within 24 hours, indicating strong retail interest.
- Annual Revenue Outlook: UiPath anticipates an 11% growth in annual recurring revenue for fiscal 2027, and while this slightly exceeds some investor expectations, analysts highlight that constant-currency net new annual recurring revenue has yet to show meaningful expansion, indicating subdued new business generation momentum.
See More
Latest Rating Changes on Wall Street
- Morgan Stanley Bullish on Alibaba: Morgan Stanley upgrades Alibaba to a top pick, emphasizing that owning in-house chips significantly enhances its chances of becoming an AI leader, despite facing near-term earnings pressure, the long-term outlook remains positive.
- Wells Fargo Double Upgrades Occidental: Wells Fargo upgrades Occidental from underweight to overweight with a $69 target price, citing its peer-leading capital efficiency trends in the Permian as a significant opportunity, albeit with associated risks.
- Citi Maintains Buy on Delta Air: Citigroup reaffirms its buy rating on Delta Air and issues a positive 30-day catalyst watch, believing that recent macro shocks and fuel price volatility have been largely priced into airline stocks with minimal fuel exposure.
- UBS Upgrades Aptiv to Buy: UBS raises Aptiv's rating from hold to buy, anticipating that the upcoming Versigent spin-off will unlock substantial value, setting a target price of $97.
See More
UiPath Reports Q4 Earnings Exceeding Expectations
- Strong Earnings Report: UiPath reported Q4 fiscal 2026 revenue of $481.11 million, surpassing estimates of $464.49 million, with adjusted earnings per share of $0.30 exceeding the $0.26 forecast, indicating robust financial performance.
- Significant Annual Growth: The company experienced a 14% year-over-year revenue increase, with annual recurring revenue reaching $1.85 billion, an 11% rise year-over-year, reflecting sustained growth and demand in the enterprise AI sector.
- Healthy Cash Flow: UiPath generated adjusted free cash flow of $182 million in the quarter, ending with $1.69 billion in cash, cash equivalents, and marketable securities, enhancing financial flexibility and investment capacity.
- Expanded Buyback Program: The company completed its previously authorized stock buyback program and received board approval for a new repurchase plan of up to $500 million, demonstrating confidence in future growth and commitment to shareholders.
See More
UiPath Achieves AIUC 1 Certification, Enhancing Market Trust
- AIUC 1 Certification Milestone: UiPath has become the first enterprise automation platform to achieve AIUC 1 certification after undergoing over 2000 technical evaluations, enhancing the security and reliability of its AI agents, which is expected to boost client trust in its automation solutions.
- Upcoming Earnings Report: UiPath is set to release its fourth-quarter earnings on March 11, with analysts forecasting earnings per share of $0.20, down from $0.26 a year earlier, and a revenue estimate of $464.49 million, indicating pressure on the company's revenue growth.
- Short-Term Strength vs. Long-Term Struggles: While UiPath's stock is currently trading 8.8% above its 20-day simple moving average, it remains 16.3% below its 100-day moving average, reflecting short-term strength but long-term challenges, with a modest 3.17% increase over the past year.
- Significant ETF Influence: UiPath holds substantial weight in key ETFs such as XOVR and WCLD, at 4.20% and 2.12% respectively, suggesting that significant inflows or outflows could directly impact its stock price, further influencing market performance.
See More
UiPath Reports Strong Quarter but Cautious Guidance Pressures Shares
- Earnings Beat: UiPath reported fourth-quarter revenue of $481.11 million, exceeding analyst expectations of $464.49 million, indicating strong market performance; however, cautious guidance from management has pressured the stock price.
- Profitability Outlook: The company expects fiscal 2027 revenue to range between $1.754 billion and $1.759 billion, while first-quarter revenue is projected between $395 million and $400 million, reflecting a cautious stance on future growth.
- AI Product Growth: UiPath's AI product ARR reached nearly $200 million, with 16 of the company's 20 largest deals including AI products, indicating that enterprises are expanding AI within existing workflows rather than replacing unattended automation.
- Analyst Rating Changes: Needham analyst upgraded UiPath's rating from Hold to Buy with a price target of $15, reflecting confidence in improving net new ARR growth and strong free cash flow, while D.A. Davidson and Wells Fargo maintained Neutral ratings with targets of $13 each.
See More
UiPath Q4 Earnings Analysis and Rating Adjustments
- Earnings Performance: UiPath reported a 15% increase in net new annual recurring revenue (NN ARR) for Q4 FY2026, despite a 10% drop in stock price during early trading, indicating stable execution and potential return to growth.
- Analyst Rating Adjustments: Needham upgraded UiPath's rating from Hold to Buy with a price target of $15, suggesting that the current stock price decline presents a buying opportunity for investors, despite market confusion regarding Workfusion's impact.
- Financial Highlights: Wells Fargo maintained an Equal Weight rating but lowered its price target to $13, emphasizing that the company achieved $150 million in operating income with a 31% operating margin in Q4, exceeding expectations, and projected FY27 operating income and free cash flow slightly above consensus estimates.
- AI Product Growth: UiPath's annual recurring revenue from AI products has reached $200 million, with a 25% increase in customers spending over $100,000 on AI solutions, reflecting a growing demand for enterprise AI solutions as adoption accelerates.
See More
Morgan Stanley Lowers UiPath Price Target Amid Modest Growth
- Price Target Revision: Morgan Stanley analyst Sanjit Singh lowered UiPath's price target from $19 to $17, reflecting a cautious outlook on the company's future growth, as fourth-quarter results met expectations but analysts see limited near-term upside.
- UBS Target Cut: UBS reduced its price target for UiPath from $17 to $13 while maintaining a 'Neutral' rating, noting that although the company projects a 9% revenue growth for fiscal 2027, the ongoing weakness in new business momentum raises concerns about its future prospects.
- Market Sentiment Shift: Despite UiPath's stock trading over 6% lower in Thursday's premarket, retail sentiment on Stocktwits remained in the 'extremely bullish' territory, with message volume shifting from 'high' to 'extremely high' within 24 hours, indicating strong retail interest.
- Annual Revenue Outlook: UiPath anticipates an 11% growth in annual recurring revenue for fiscal 2027, and while this slightly exceeds some investor expectations, analysts highlight that constant-currency net new annual recurring revenue has yet to show meaningful expansion, indicating subdued new business generation momentum.
See More
Latest Rating Changes on Wall Street
- Morgan Stanley Bullish on Alibaba: Morgan Stanley upgrades Alibaba to a top pick, emphasizing that owning in-house chips significantly enhances its chances of becoming an AI leader, despite facing near-term earnings pressure, the long-term outlook remains positive.
- Wells Fargo Double Upgrades Occidental: Wells Fargo upgrades Occidental from underweight to overweight with a $69 target price, citing its peer-leading capital efficiency trends in the Permian as a significant opportunity, albeit with associated risks.
- Citi Maintains Buy on Delta Air: Citigroup reaffirms its buy rating on Delta Air and issues a positive 30-day catalyst watch, believing that recent macro shocks and fuel price volatility have been largely priced into airline stocks with minimal fuel exposure.
- UBS Upgrades Aptiv to Buy: UBS raises Aptiv's rating from hold to buy, anticipating that the upcoming Versigent spin-off will unlock substantial value, setting a target price of $97.
See More
