AI And Robot Automation Firm Wins Over Wall Street Analysts - Especially After Their Layoffs - UiPath (NYSE:PATH)

Needham analyst Scott Berg reiterates UiPath Inc PATH with a Buy and a $20 price target.
UiPath reported solid 4Q results as several recent Go-to-Market changes resonate better with customers, driving a health ARR beat of nearly $27 million.
However, Berg expects PATH shares will trade higher Thursday on profitability and FCF guidance materially ahead of expectations highlighting the impact of the company's recent layoffs.
Regarding operational GTM changes, the company's newer vertical sales strategy and solution accelerators highlighted many recent improvements.
The analyst expects some to point to the announced departure of the Chief Business Officer as a point of uncertainty for FY24. Still, Co-CEO Bob Enslin's strong global sales leadership experience should be able to quell any concerns here.
RBC Capital analyst Matthew Hedberg maintains UiPath with a Sector Perform and raises the price target from $15 to $17.
UiPath delivered solid results ahead of expectations and high-end guidance.
Additionally, UiPath raised the FY24 guide on an absolute basis off better-than-expected FY23 results, which points to 18.6% revenue and ARR growth vs. 18% previously outlined.
Overall, Hedberg likes its core business's momentum and broader conversations around the potential of generative AI and ChatGPT integration.
JP Morgan analyst Mark Murphy maintains UiPath with a Neutral and raises the price target from $16 to $18.
The analyst reaffirms a positive tactical view with the ARR growth still slowing but regaining the narrative and improving margins.
Wells Fargo analyst Michael Turrin maintains UiPath with an Overweight and raises the price target from $18 to $20.
A solid Q4 beat-and-raise provided encouraging signs that the bar for PATH has now been framed with appropriate conservatism, presenting a more favorable path into FY24 post a series of GTM and product-focused changes (& headwinds felt) in FY23.
The price target reflects a sizeable market opportunity for automation-enabling technologies and PATH's established position within RPA.
Price Action: PATH shares traded higher by 15.71% at $16.94 on the last check Thursday.

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