Citi Boosts UiPath Stock with Buy Rating and $23 Price Target

UiPath (PATH) stock received a boost after Citi initiated coverage with a Buy rating and set a price target of $23. The move follows a tough week for the stock, which dropped 16% last week, its worst decline in over four months.

Citi analyst Yitchuin Wang sees an attractive entry point due to the post-earnings selloff. He believes that enterprise AI will require orchestration across various components and automation will remain critical for governance and compliance.

Other analysts have also raised their price targets, but with some reservations. Bank of America analyst Koji Ikeda lifted his target to $15 from $13, but kept an Underperform rating. He said UiPath's Q2 earnings did little to address the key question: whether AI will speed up annual recurring revenue growth.

UiPath's Q2 revenue rose 13% to $410.26 million, beating estimates of $397.8 million. Adjusted EPS was in line with expectations at $0.15. The company is expected to post $0.19 per share for the current quarter and $0.80 per share for the fiscal year.