Citi Analyst Sees Buying Opportunity in UiPath Amid Post-Earnings Selloff

UiPath (PATH) stock rebounded on Tuesday after Citi analysts launched coverage with a Buy recommendation and established a $23 price objective. The company's shares plummeted 16% during the previous week, marking their worst weekly performance in over four months.

Citi analyst Yitchuin Wang believes the post-earnings decline presents a compelling buying opportunity, citing the increasing demand for enterprise artificial intelligence that requires sophisticated orchestration and automation platforms.

Other firms have also increased their price objectives for UiPath after its second-quarter financial disclosure. Bank of America raised its target to $15 from $13 while maintaining an Underperform stance. Truist Securities boosted its target to $17, and TD Cowen lifted its target to $16. However, these adjustments arrive accompanied by caution.

UiPath's second-quarter revenue reached $410.26 million, representing 13% year-over-year growth and exceeding the Street's consensus forecast of $397.8 million. The company is projected to deliver $0.19 per share in earnings for the ongoing quarter, representing 18.8% year-over-year growth.