- The shares of UiPath Inc. (NYSE: PATH) have received a $56 price target from Oppenheimer. These are the details.
The shares of UiPath Inc. (NYSE: PATH) have received a $56 price target from Oppenheimer. And Oppenheimer analyst Brian Schwartz reiterated an “Outperform” rating on the shares.
Schwartz adjusted the rating after conducting an enterprise survey to assess UiPath and RPA demand, opportunities, and risks. And the key points include:
1.) Healthy current demand and fertile area for selling UiPath’s business efficiency tools
2.) CIO customers see UiPath as a large 2022 IT budget share gainer
3.) RPA is a solution for the Great Resignation challenges
4.) Competition is strengthening
5.) CIOs perceive RPA products as discretionary
6.) Front-office adoption is slow
“We believe the RPA market is early in evolution and PATH is the best asset in the category to own for the future. Strong positioning, an expanding solution portfolio, and growing enterprise distribution capability supports our $2.13B ARR forecast by FY25 (33% CAGR). While we believe UiPath can sustain a mid-30% CAGR through FY25, this durable growth is not fully reflected in the multiple,” wrote Schwartz in a research note. “We see a 2:1 upside/downside ratio and approx. $43 million upside to FY23 ARR consensus. Our CIO survey work reveals a healthy operating environment. Nearly 90% of UiPath’s installed-base CIOs surveyed plan to increase RPA usage in 2022. The healthy demand for UiPath is being driven by a focus and prioritization on business efficiency products to support enterprise digital transformations in 2022.”
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