UiPath Inc.'s (NYSE:PATH) share price has fluctuated between $13.33 and $10.44. The company is considered undervalued with an intrinsic value of $15.40 and a current trading price of $10.96. The stock has a high beta, indicating volatility. The future outlook is positive with expected profit growth of 88% over the next couple of years, making it a potentially attractive investment opportunity.
UiPath Inc. (PATH), a leading provider of Robotic Process Automation (RPA) software, has experienced a significant drop in its stock price over the past few months. As of the latest trading session on July 2, 2025, the stock closed at $10.73, marking a 2.37% decline from the previous day. This performance contrasts with the broader market trends, where the S&P 500 gained 0.03% and the technology-dominated Nasdaq saw a decrease of 0.01%.
Over the past month, UiPath shares have depreciated by 11.37%, underperforming the Computer and Technology sector's gain of 6.37% and the S&P 500's gain of 3.46% [2]. The company's recent underperformance has raised questions about its near-term prospects, despite its strong position in the RPA market.
UiPath's strategic partnerships with major technology giants, such as Microsoft (MSFT), Amazon (AMZN), and Salesforce (CRM), have been a key driver of its success. These alliances not only expand UiPath's reach but also integrate its offerings into broader enterprise ecosystems powered by Microsoft Azure, Amazon's AWS, and Salesforce Cloud solutions [1].
The company reported a 6% year-over-year increase in revenues to $357 million in the first quarter of fiscal 2026, with its annual recurring revenues rising 12% to $1.69 billion [1]. UiPath's strong financial position, highlighted by its debt-free status and ample cash reserves, positions it well to navigate economic uncertainties and capitalize on emerging opportunities in the competitive RPA market [1].
Analyst sentiment towards UiPath has remained muted, with estimates for EPS remaining unchanged at 8 cents for the upcoming quarter and 56 cents for fiscal 2026 [1]. The company is expected to post an EPS of $0.08 and revenue of $347.82 million in the upcoming earnings release on September 4, 2025, indicating a 100% growth compared to the equivalent quarter last year [2].
UiPath currently has a Zacks Rank of #3 (Hold), indicating a neutral outlook [2]. The company's current valuation, with a Forward P/E ratio of 19.76, is a discount compared to its industry's Forward P/E of 29.24. Additionally, UiPath boasts a PEG ratio of 1.07, which is lower than the industry average of 2.18 [2].
Looking ahead, UiPath's future growth potential is promising, with analysts estimating a 12-month price target range of $12.00 - $16.00, with an average of $14.25 [3]. The company's expected profit growth of 88% over the next couple of years makes it an attractive investment opportunity, despite its recent stock price fluctuations.
References:
[1] https://finance.yahoo.com/news/uipath-stock-falls-11-3-155200135.html
[2] https://www.nasdaq.com/articles/uipath-path-stock-drops-despite-market-gains-important-facts-note
[3] https://www.benzinga.com/quote/PATH/report
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