Uipath Stock Slides Following PT Cuts by Several Analysts

Uipath Stock

UiPath stock slumps to trade at $12.67 as of 12:40 PM EDT on Wednesday.

UiPath (NYSE:PATH) stated 2024 projections of 18% year-over-year growth for both revenue and ARR of $1,185 million and $1,360 million, which are below current consensus estimates for sales of $1.25 billion and ARR of $1.442 billion. This was done during the company’s Investor Day.

Additionally, compared to the midpoint of the fiscal year 2023 estimate published on September 6, 2022. According to estimates, the non-GAAP operating margin will rise by rise by 300 to 400 basis points year over year.

After visiting the company’s Forward 5 conference and Investor Day, Credit Suisse analyst Phil Winslow decreased the firm’s price objective for UiPath from $37.50 to $30 and maintained an Outperform rating on the shares.

According to the analyst, Chris Webber and Rob Enslin, Co-CEO, both provided noteworthy updates on UiPath’s go-to-market strategy, particularly in relation to customer segmentation. According to Winslow, UiPath’s CFO Ashim Gupta also forecasted an operating margin headwind of 200 basis points in 2024 compared to 2023 due to the amortization of commissions, which is anticipated to continue through 2026.

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Raimo Lenschow, an analyst at Barclays, maintained an Overweight rating on the shares while lowering the firm’s price objective for UiPath from $18 to $17. In a research note, Lenschow informs investors that UiPath’s investor day demonstrated the “broadening platform story” and additional specifics regarding the better go-to-market momentum.

The analyst appreciated the added detail but laments management’s choice to forecast annual recurring revenue for fiscal 2024 at 18% year over year, less than the consensus of 25%, “which would make people feel less.

PATH stock, Expert outlook

The stock was downgraded by research firm Mizuho in early September when UiPath cut its fiscal 2023 outlook, citing the company’s “strategic repositioning.” PATH stock now has a consensus buy recommendation from Wall Street analysts; authors of Seeking Alpha have given the company’s stock a hold rating. shares. UiPath (PATH) is rated as held by Seeking Alpha’s quantitative approach, which consistently outperforms the stock market.

On Wednesday, shares are down 3.65% in the premarket.

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