PATH Stock Wrapped Its Worst Week In 4 Months: UiPath Wins Higher Price Targets, But Analysts Still Want AI Proof

• Bank of America raised its UiPath price target to $15 but kept an Underperform rating, while Truist lifted its target to $17 and maintained Hold. 
• Bank of America said UiPath’s AI opportunity remains unproven for boosting ARR growth.
• TD Cowen also lifted its price target to $16, citing steady execution and growing AI adoption.

 UiPath Inc. (PATH) has garnered higher price targets from several Wall Street analysts after its fiscal second-quarter results, but enthusiasm remains tempered by questions over artificial intelligence’s impact on growth. Analysts cited solid ARR trends and rising AI adoption while waiting for clearer evidence that the technology can boost the company’s revenue. 

UiPath stock edged 0.2% higher in Tuesday’s premarket after plunging 16% last week, its worst in over four months.

BofA, Truist Raise UiPath Price Target, But Await Faster AI Growth 

On Sunday, Bank of America analyst Koji Ikeda increased his price target on PATH to $15 from $13 while maintaining an ‘Underperform’ rating. Ikeda said the second-quarter (Q2) earnings did little to settle the central question surrounding UiPath: whether AI will materially speed up annual recurring revenue growth. Still, BofA adjusted its financial model to account for stronger margin expectations.

Truist raised its price target to $17 from $12 but kept a Hold rating. The firm sees more agentic AI deals and some improvement in customer growth, but wants to see faster growth before becoming more positive. 

TD Cowen Highlights UiPath’s Steady Execution And AI Adoption 

DA Davidson analyst Lucky Schreiner raised the price target to $16 from $12 and retained a ‘Neutral’ rating. Schreiner viewed Q2 favorably, noting that UiPath exceeded expectations for annual recurring revenue (ARR) and modestly increased its fiscal 2027 ARR outlook. The upcoming investor day on Sept. 22 could give investors more detail on how management plans to push growth higher.

TD Cowen raised its price target to $16 from $13 but kept a Hold rating. The firm said Q2 performance was steady, ARR remained strong, customer retention was stable, and AI use continued to grow. 

UiPath’s Q2 revenue increased 13% to $410.26 million, above analysts’ estimate of $397.8 million, as per Fiscal Ai data. Adjusted earnings came in at $0.15 per share, matching expectations. However, Q2 gross margin fell to 80% from 82% last year. 

What PATH Retail Traders Are Saying

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. 

A user said, “Path is still relatively cheap, trading at a forward price-to-sales ratio of 4.4 times for a high gross margin, recurring business model.”

Another user said, “They need to step up and start buying back more stock more aggressively. IMO I am long.” 

PATH stock has tumbled over 7% year-to-date. 

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