Morgan Stanley Has Lowered Expectations for UiPath (NYSE:PATH) Stock Price

UiPath (NYSE:PATH) had its target price reduced by Morgan Stanley from $17.00 to $15.00 in a report issued on Friday,Benzinga reports. The firm presently has an “equal weight” rating on the stock. Morgan Stanley’s price target indicates a potential upside of 28.04% from the company’s previous close.

PATH has been the topic of several other research reports. Wall Street Zen cut UiPath from a “strong-buy” rating to a “buy” rating in a research report on Saturday, March 28th. UBS Group reduced their price objective on UiPath from $17.00 to $13.00 and set a “neutral” rating on the stock in a research note on Thursday, March 12th. Truist Financial reduced their price objective on UiPath from $17.00 to $12.00 and set a “hold” rating on the stock in a research note on Thursday, March 12th. Royal Bank Of Canada set a $14.00 price target on UiPath in a research note on Wednesday, February 11th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of UiPath in a research note on Friday, March 27th. Two investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $13.93.

UiPath Stock Performance

PATH traded up $0.14 during trading hours on Friday, reaching $11.72. The company’s stock had a trading volume of 31,406,078 shares, compared to its average volume of 32,027,912. UiPath has a 52 week low of $9.20 and a 52 week high of $19.84. The company’s 50-day moving average is $10.74 and its 200-day moving average is $12.91. The firm has a market cap of $6.14 billion, a PE ratio of 22.38, a price-to-earnings-growth ratio of 1.83 and a beta of 0.91.

UiPath (NYSE:PATH) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.15 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.15. UiPath had a return on equity of 5.69% and a net margin of 17.53%.The business had revenue of $418.38 million for the quarter, compared to analysts’ expectations of $397.54 million. During the same quarter in the prior year, the business earned $0.11 EPS. The firm’s revenue for the quarter was up 17.3% on a year-over-year basis. Equities analysts anticipate that UiPath will post 0.32 earnings per share for the current fiscal year.

Institutional Investors Weigh In On UiPath

A number of hedge funds have recently added to or reduced their stakes in PATH. Noble Wealth Management PBC bought a new stake in UiPath in the fourth quarter worth approximately $25,000. HighMark Wealth Management LLC bought a new stake in UiPath in the fourth quarter worth approximately $25,000. Raleigh Capital Management Inc. acquired a new stake in UiPath in the fourth quarter valued at approximately $26,000. TD Waterhouse Canada Inc. grew its stake in UiPath by 1,270.8% in the fourth quarter. TD Waterhouse Canada Inc. now owns 1,782 shares of the company’s stock valued at $29,000 after acquiring an additional 1,652 shares during the period. Finally, Atlas Capital Advisors Inc. acquired a new stake in UiPath in the fourth quarter valued at approximately $37,000. 62.50% of the stock is currently owned by institutional investors.

Key UiPath News

Here are the key news stories impacting UiPath this week:

• Positive Sentiment: Needham & Company reaffirmed its Buy rating on UiPath and set a $15 price target, implying meaningful upside from current levels. Benzinga article
• Positive Sentiment: UiPath reported Q1 revenue of $418.4 million, above Wall Street estimates, with sales rising 17.3% year over year, signaling continued demand for its automation software and AI products. Yahoo Finance article
• Positive Sentiment: The company also said it achieved first-time GAAP profitability, a notable milestone that may improve investor confidence in UiPath’s ability to scale profitably. Yahoo Finance article
• Positive Sentiment: UiPath’s updated guidance for Q2 revenue of $395 million to $400 million and full-year revenue of about $1.8 billion was broadly in line with expectations, reducing concern over a near-term slowdown. Business Wire article
• Positive Sentiment: Trading activity also looked bullish, with unusually heavy call-option buying and reports that shares were rising ahead of earnings, suggesting traders were positioning for upside. American Banking News article
• Neutral Sentiment: UiPath’s Q1 non-GAAP EPS of $0.15 matched expectations, so the stock reaction is being driven more by revenue growth, profitability progress, and guidance than by a major earnings beat. Yahoo Finance article

About UiPath

UiPath Inc provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric.