What's Going On With UiPath Stock After Earnings?

UiPath, Inc. PATH shares are trading lower Thursday despite better-than-expected fourth-quarter results and an analyst upgrade. Here's a look at what to know. 

What To Know:

The company reported quarterly earnings of 22 cents per share which beat the analyst consensus estimate of 16 cents by 37.5%, and quarterly sales clocked in at a record $405.253 million, also beating the consensus estimate.

UiPath guided first-quarter revenue in a range of $330 million to $335 million, below the $347.851 million estimate. However, the company said it expects fiscal year 2025 revenue in a range of $1.555 billion to $1.56 billion, versus the $1.531 billion estimate. 

JP Morgan analyst Mark Murphy upgraded UiPath from a Neutral to an Overweight rating and raised the price target from $22 to $28 following the print. 

Several analysts also adjusted price targets on the stock: 

• Needham maintained its Buy rating and raised the price target from $25 to $30.
• B of A Securities analyst Brad Sills maintained a Buy rating and raised its price target from $26 to $30.
• Mizuho analyst Siti Panigrahi maintained a Neutral and raised the price target from $22 to $25.
• DA Davidson maintained its Neutral rating on UiPath and raised its price target from $20 to $24.
• Wells Fargo analyst Michael Turrin maintained the stock with an Equal-Weight and raised the price target from $24 to $25.

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PATH Stock Forecast In 2030:

Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.

If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.

For UiPath PATH, over the past 5 years, it's annualized stock performance is -18.75%, and if you assume that trend continues for another 5 years, you can expect a stock to trade at $8.06.

Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.

PATH Price Action: According to Benzinga Pro, UiPath shares are down 6.9% at $22.75 at the time of publication.

Image: Ahmad Ardity from Pixabay