TD Cowen cuts UiPath shares price target, maintains Hold rating

TD Cowen has maintained a Hold rating on shares of UiPath Inc. (NYSE: NYSE:), while lowering the price target to $16.00 from the previous $17.00.

The adjustment follows a period of significant events for the company, including a challenging first quarter and an abrupt change in CEO. Despite these hurdles, UiPath has shown signs of stabilization in the second quarter.

The firm acknowledged ongoing uncertainties regarding the demand for UiPath’s offerings and the sustainable growth outlook for the company. Additionally, there are concerns about the risks associated with executing its restructuring program.

However, management’s more confident stance and the announcement of an incremental $500 million share repurchase program, which represents approximately 7% of the company’s market capitalization, are expected to be positively received by the market.

Analysts at TD Cowen highlighted the importance of consistent performance through the second half of the fiscal year 2025 for UiPath. Adjustments to estimates have been made in light of the recent developments, leading to the new price target of $16.00.

In other recent news, UiPath has made significant strides in its financial performance and operational restructuring. The company’s Q2 results surpassed expectations, with a 10% revenue growth and a 19% increase in Annual Recurring Revenue (ARR).

The positive performance led to price target upgrades from various firms, including Evercore ISI, which raised its target to $16, BofA Securities to $18, and DA Davidson to $15.

UiPath also announced key changes to its leadership team. S. Somasegar, a seasoned technology executive, has joined its Board of Directors, while Ashim Gupta, an internal veteran, has taken on the role of Chief Operating Officer, in addition to his current role as Chief Financial Officer.

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