Why This UiPath Analyst Believes Stock Is Still Attractive After 100% Gain In 2023

Zinger Key Points
  • UiPath Inc. ends 2023 with over 100% gains, strong in workflow automation.
  • Analyst initiates Outperform rating, citing UiPath's high retention rate and market potential.

Shares of UiPath Inc PATH ended 2023 with gains of more than 100%.

The company is a leader in the workflow automation and process optimization markets and is poised to receive a boost from investments in artificial intelligence (AI), according to William Blair.

The UiPath Analyst: Jake Roberge initiated coverage of the stock with an Outperform rating.

The UiPath Thesis: The company’s platform has a strong retention rate of 97%, which indicates that it is becoming “mission critical for its customers,” Roberge said in the initiation note.

Check out other analyst stock ratings.

“UiPath is also expanding into new opportunities, such as generative AI, API integration, and application testing,” the analyst wrote.

“While UiPath is already at a large scale with over $1.3 billion in annual recurring revenue (ARR) and nearly 11,000 customers, we believe its total addressable market (TAM) is significant - UiPath pegs it at $61 billion,” he added.

While UiPath’s latest guidance for fiscal 2024 calls for operating margins of 16%, with most go-to-market restructuring complete, “we believe the company could see nice efficiency gains over the next few years,” Roberge further stated.

PATH Price Action: Shares of UiPath were down 3.8% to $23.87 at the time of publication Tuesday.

Now Read: Tesla Stock Takes Off Premarket After Q4 Deliveries Exceed Expectation; Full-Year Sales Exceed 1.8 Million-Unit Target
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Posted In: Analyst ColorInitiationAnalyst RatingsExpert IdeasJake RobergeStories That MatterWilliam Blair
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