UBS raised its price target on UiPath to $19 from $12, citing stable demand and better-than-expected checks ahead of the company’s second-quarter earnings release. The stock was trading at $18.15 at the time of the upgrade, reflecting a 63% gain over the past year.
The analyst also noted that UiPath is expected to report net new annual recurring revenue (ARR) of around $30 million for the quarter, which ends in July. Earnings are scheduled for release on September 3, three days after the article’s publication. UBS expects UiPath to provide preliminary revenue and ARR growth guidance for fiscal 2028 during its Investor Day at the end of September.
UiPath’s gross profit margins remain strong at 83%, and the company’s free cash flow multiple is trading near 16 times the estimated 2027 figure. Analysts have revised earnings estimates upward for the upcoming period, with 10 firms adjusting their outlooks. Bloomberg options data indicated a potential 11% swing in the stock following the earnings announcement, while historical options movement in December 2025 showed a 35.8% rise against an implied 12.3% move.
The upgrade follows UiPath’s launch of Maestro Case, a native AI-driven case management tool designed to handle complex, long-duration processes. The company also secured a seven-figure contract in June, driven by large deals involving WorkFusion. UBS expects demand to remain stable, supporting the higher valuation.
