UiPath shares rally 10.5% on positive analyst note and Reddit chatter

UiPath shares rallied 10.5% on Monday, driven by a positive analyst note and increased discussion on Reddit's Wall Street Bets. Analyst Terry Tillman reaffirmed his hold rating but expressed confidence in UiPath meeting its full-year outlook. Meme stock traders on WSB likely contributed to the stock's surge, with mentions increasing 500% over the weekend. Despite the rally, UiPath remains 85% below its 2021 high, and its low valuation (4.3 times sales) could make it an attractive buy for some investors.

UiPath (NYSE: PATH) shares rallied 10.5% on Monday, driven by a positive analyst note and increased discussion on Reddit's Wall Street Bets (WSB). Analyst Terry Tillman reaffirmed his hold rating but expressed confidence in UiPath meeting its full-year outlook. Meme stock traders on WSB likely contributed to the stock's surge, with mentions increasing 500% over the weekend.

The rally came after UiPath reported $0.15 earnings per share for the last quarter, exceeding analysts' estimates of $0.08, along with a 14.6% year-over-year revenue increase to $361.73 million Pallas Capital Advisors LLC Has $1.36 Million Holdings in UiPath, Inc. $PATH^[3]. The company also announced a new data-licensing contract with Alphabet, worth $60 million, which could further boost its financial performance.

Despite the rally, UiPath remains 85% below its 2021 high. Its low valuation (4.3 times sales) could make it an attractive buy for some investors, as the company continues to expand its automation platform and explore new revenue streams.

Analysts have mixed opinions on UiPath. Morgan Stanley lifted their target price on shares of UiPath from $12.00 to $15.00 and gave the company an "equal weight" rating UiPath, Inc. $PATH Shares Sold by Voya Investment Management LLC^[2]. Meanwhile, BMO Capital Markets lowered their price target on shares of UiPath from $15.50 to $12.50 and set a "market perform" rating on the stock UiPath, Inc. $PATH Shares Sold by Voya Investment Management LLC^[2].