UiPath, Inc. (PATH) shares took a dive on Friday, reversing an earlier surge after the company announced strong second-quarter financial results. The company beat analyst expectations on both revenue and earnings, with revenue growing over 10% year-over-year. UiPath also announced a $500 million expansion to its share repurchase program and issued fiscal year revenue guidance that exceeded estimates.
Despite the positive news, Wall Street analysts remain cautiously optimistic. Several analysts raised their price targets for UiPath following the earnings report. Barclays maintained an Equal-Weight rating while boosting their price target from $14 to $15. Similarly, BMO Capital, B of A Securities, Evercore ISI Group, and Wells Fargo all raised their price targets. However, none of these analysts have issued a positive rating on the stock, with nine analysts maintaining a neutral rating.
While the average 12-month price target for UiPath sits at $15.33, suggesting potential upside, investors seem hesitant after the initial decline. The stock is currently down 44.87% year-to-date, and its average daily trading volume has been surpassed. Additionally, 12.05% of shares are being sold short, indicating a degree of skepticism in the market.
Ultimately, the future trajectory of UiPath shares remains uncertain. Despite the strong earnings performance, the stock’s recent decline and the absence of positive analyst ratings suggest investors are waiting for further evidence of sustained growth before embracing the stock. Time will tell whether UiPath can overcome this initial downturn and regain investor confidence.
