UiPath (PATH) Stock Rebounds as Citi Analyst Spots Buying Opportunity Post-Selloff

Key Takeaways

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Citi launched coverage of UiPath (PATH) with a Buy recommendation and $23 price objective
PATH shares tumbled 16% during the previous week, marking the worst weekly performance in four-plus months
Bank of America increased its price objective to $15 while maintaining an Underperform stance
Truist boosted its target to $17 and TD Cowen increased to $16, both keeping Hold recommendations
Second-quarter revenue climbed 13% to $410.26 million, surpassing consensus estimates of $397.8 million

UiPath (PATH) received a bullish endorsement from Citi analysts on Tuesday, as the investment bank launched coverage with a Buy recommendation and established a $23 price objective. This comes on the heels of a challenging period for the automation software company, whose shares plummeted 16% during the prior week—marking its most severe weekly decline in over four months.

UiPath Inc., PATH

Shares ticked up 0.2% in Tuesday’s premarket session. The stock is presently trading at a valuation premium compared to industry peers, as noted by Zacks, which assigns it a D grade on its Value Style Score metric.

Citi analyst Yitchuin Wang believes the post-earnings decline presents a compelling buying opportunity. Wang’s thesis centers on the notion that enterprise artificial intelligence will demand sophisticated orchestration spanning agents, models, human workers, APIs, and robotic process automation, with automation platforms remaining essential for governance and regulatory compliance frameworks.

Across Wall Street, firms have generally increased their price objectives following UiPath’s fiscal second-quarter financial disclosure, though these adjustments arrive accompanied by notable caution.

Street Ups Targets While Seeking AI Revenue Validation

Bank of America analyst Koji Ikeda elevated his price objective to $15 from a previous $13 while retaining an Underperform rating. Ikeda noted that the Q2 results failed to provide clarity on the critical question facing investors: whether artificial intelligence capabilities will meaningfully accelerate annual recurring revenue expansion. BofA did, however, modify its financial model to incorporate stronger profitability margin projections.

Truist Securities increased its price target to $17 from $12, maintaining a Hold rating on the shares. The firm acknowledges progress in agentic AI contract wins and modest customer base expansion, but emphasizes the need to observe accelerated growth metrics before adopting a more constructive stance.

TD Cowen lifted its price objective to $16 from $13, also preserving a Hold rating. The firm highlighted stable Q2 execution, solid customer retention metrics, and expanding AI adoption as encouraging signals.

DA Davidson analyst Lucky Schreiner raised his target to $16 from $12, remaining at Neutral. Schreiner observed that UiPath exceeded ARR projections and marginally elevated its fiscal 2027 ARR guidance.

Second Quarter Delivers Revenue Upside

UiPath’s second-quarter revenue reached $410.26 million, representing 13% year-over-year growth and exceeding the Street’s $397.8 million consensus forecast. Adjusted earnings per share came in at $0.15, matching analyst expectations. Gross margin contracted to 80% from 82% in the year-ago period.

Looking ahead, UiPath is projected to deliver $0.19 per share in earnings for the ongoing quarter, representing 18.8% year-over-year growth. The full fiscal year consensus estimate stands at $0.80 per share, reflecting 11.1% annual growth.

Zacks assigns PATH a #2 (Buy) ranking, citing consistent earnings estimate momentum despite the stock’s valuation premium relative to peers.

Revenue projections for the current quarter are pegged at $444.34 million, implying 8.1% year-over-year expansion.

UiPath has scheduled its investor day for September 22, where leadership is anticipated to present strategic initiatives designed to accelerate top-line growth.

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