UiPath Shares Drop Despite Buy Rating from Citi
Despite a new 'Buy' rating and $23 price target from Citi, UiPath (PATH) shares fell by around 3% on September 9. The decline came after the company issued a Q3 revenue guidance of $442.5 million that missed expectations, causing investor concern despite strong annual recurring revenue growth to $1.938 billion and non-GAAP operating margin expansion to 22%. Citi analyst Yitchuin Wong highlighted UiPath's potential as an AI orchestration layer but noted the stock weakness offers a buying opportunity for long-term investors. Peers in enterprise automation also faced downward pressure, with Pegasystems (PEGA) down nearly 3% and C3.ai (AI) off by about 1%. The broader market saw modest declines, though the drop appeared to be more company-specific than sector-wide. UiPath's upcoming investor day on September 22 is seen as a potential catalyst for renewed interest. Investors remain skeptical due to slowing ARR growth and competitive pressures in automation software. Citi’s initiation of coverage did not prevent the sell-off, suggesting market focus remains on near-term performance rather than strategic positioning.
Topics: analyst ratings Citi enterprise software revenue guidance UiPath