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Yahoo
4 days ago
- Business
- Yahoo
Analysts Applaud UiPath's AI Traction, But Net New ARR Slide Sparks Caution
UiPath, Inc. (NYSE:PATH) shares are trading higher after the company reported better-than-expected first-quarter results, issued second-quarter sales guidance above estimates, and raised its FY26 guidance. On Thursday, the company reported revenue of $356.62 million, versus estimates of $332.87 million, and adjusted EPS of 11 cents, exceeding the estimates of 10 cents. The company raised its fiscal 2026 forecast from a range of $1.52 billion to $1.53 billion to a new range of $1.549 billion to $1.554 billion versus estimates of $1.53 analysts raised the price forecast on the stock following the results. RBC Capital analyst Matthew Hedberg maintained a Sector Perform rating and raised the price target from $13 to $15. After a challenging initial FY26 guide and miss to end last year due to public sector issues, UiPath showed encouraging progress in that vertical through proactive engagement, said the analyst. According to the analyst, the Federal renewals met expectations, with some agencies even outperforming, though budget finalizations still present some pressure. UiPath is seeing early success with agentic initiatives, including over 250,000 agent runs on Agent Builder and 11,000 process instances powered by Maestro since their preview releases, Hedberg remarked in an analyst note. The analyst said that despite ongoing macroeconomic variability, management expressed continued prudence in their FY26 guidance, which was nonetheless raised across the board. Hedberg highlighted the company's optimism about its agentic AI opportunities and early customer interest, though significant revenue contributions from this area are not anticipated until FY27. Needham analyst Scott Berg reiterated a Hold rating. In an analyst note, Berg observed that UiPath posted a solid upside in revenue and operating income versus low Street expectations, primarily driven by strong license revenue that exceeded their estimate by 24%. However, net new ARR came in at $27 million, a 39% year-over-year decrease (compared to a consensus of +$22.6 million), which the analyst attributes to lingering impacts from go-to-market (GTM) changes and execution improvements from FY25. Berg pointed out that the current guidance indicates an increasingly second-half weighted performance, with 76% of net new ARR expected in the second half versus 57% in FY25, suggesting a moderately more challenging ramp-up. The guidance comes despite continued declines in key metrics, including Net Revenue Retention (NRR), which dropped to 108% in the quarter, Berg added. KeyBanc analyst Jason Celino retained a Sector Weight rating on the stock. The analyst revised the FY26 estimates to account for the first quarter results and updated the outlook, expecting revenue of $1.552 billion (vs. $1.528 billion prior & consensus of $1.522 billion) for FY26. While the analyst finds the improved results and advancements within the public sector encouraging, he maintained the rating due to the early stage of the agentic AI opportunity and ongoing macroeconomic uncertainty. Truist analyst Terry Tillman raised the price forecast from $12 to $13 while maintaining a Hold rating. In an analyst note, Tillman underscored that the company surpassed their estimates, with particularly strong beats in total revenue and non-GAAP operating income. Positive traction appears to be building from agentic solutions, the new partner program, and the recently acquired Peak, among other initiatives, which led the analyst to raise the estimates based on the improved outlook. In particular, Tillman now sees revenue of $1.547 billion (vs. $1.527 billion earlier) compared to a consensus of $1.522 billion for FY26. The analyst emphasized the company's narrative is still a work in progress concerning the improvement of its annualized renewal run rate (ARR) and the return of net new ARR to a trajectory of robust growth. Price Action: PATH shares are trading higher by 1.20% to $13.10 at last check Friday. Read Next:Photo by Ian Dewar Photography via Shutterstock Date Firm Action From To Jan 2022 Macquarie Upgrades Neutral Outperform Jan 2022 Macquarie Upgrades Neutral Outperform Jan 2022 Oppenheimer Upgrades Perform Outperform View More Analyst Ratings for PATH View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? UIPATH (PATH): Free Stock Analysis Report This article Analysts Applaud UiPath's AI Traction, But Net New ARR Slide Sparks Caution originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
RBC Capital Lifts Informatica (INFA) PT to $25, Keeps Sector Perform Rating
On Wednesday, RBC Capital Markets analyst Matthew Hedberg raised the price target for Informatica Inc. (NYSE:INFA) to $25 from $22, while maintaining a Sector Perform rating. This adjustment follows the announcement that Informatica has entered into a definitive agreement to be acquired by Salesforce (NYSE:CRM) for $25 per share. This acquisition values Informatica at ~$8 billion in equity, excluding Salesforce's existing investment. A business executive in a modern office looking over reports detailing artificial intelligence. Hedberg noted that the portfolios of Informatica and Salesforce are complementary, which suggests the merger is likely to proceed without significant regulatory scrutiny. Informatica maintains impressive gross profit margins of 80.54% and operates with a moderate level of debt, factors that likely attracted Salesforce's interest. The transaction is anticipated to be finalized in Salesforce's FY2027, which corresponds to the calendar year 2026, pending the fulfillment of customary closing conditions, such as approval by Informatica shareholders. This acquisition will potentially enhance Salesforce's product offerings by leveraging Informatica's expertise in data integration software and services. Informatica Inc. (NYSE:INFA) develops an AI-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems at enterprise scale worldwide. While we acknowledge the potential of INFA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than INFA and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
RBC Capital Lifts Informatica (INFA) PT to $25, Keeps Sector Perform Rating
On Wednesday, RBC Capital Markets analyst Matthew Hedberg raised the price target for Informatica Inc. (NYSE:INFA) to $25 from $22, while maintaining a Sector Perform rating. This adjustment follows the announcement that Informatica has entered into a definitive agreement to be acquired by Salesforce (NYSE:CRM) for $25 per share. This acquisition values Informatica at ~$8 billion in equity, excluding Salesforce's existing investment. A business executive in a modern office looking over reports detailing artificial intelligence. Hedberg noted that the portfolios of Informatica and Salesforce are complementary, which suggests the merger is likely to proceed without significant regulatory scrutiny. Informatica maintains impressive gross profit margins of 80.54% and operates with a moderate level of debt, factors that likely attracted Salesforce's interest. The transaction is anticipated to be finalized in Salesforce's FY2027, which corresponds to the calendar year 2026, pending the fulfillment of customary closing conditions, such as approval by Informatica shareholders. This acquisition will potentially enhance Salesforce's product offerings by leveraging Informatica's expertise in data integration software and services. Informatica Inc. (NYSE:INFA) develops an AI-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems at enterprise scale worldwide. While we acknowledge the potential of INFA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than INFA and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Business Insider
20-05-2025
- Business
- Business Insider
SailPoint, Inc. (SAIL) Gets a Buy from RBC Capital
In a report released on May 18, Matthew Hedberg from RBC Capital maintained a Buy rating on SailPoint, Inc. (SAIL – Research Report), with a price target of $27.00. The company's shares closed yesterday at $18.35. Confident Investing Starts Here: Hedberg covers the Technology sector, focusing on stocks such as Olo, Snowflake, and N-able. According to TipRanks, Hedberg has an average return of 20.4% and a 66.80% success rate on recommended stocks. In addition to RBC Capital, SailPoint, Inc. also received a Buy from TD Cowen's Shaul Eyal in a report issued on May 16. However, on May 15, Mizuho Securities maintained a Hold rating on SailPoint, Inc. (NASDAQ: SAIL). The company has a one-year high of $26.35 and a one-year low of $15.05. Currently, SailPoint, Inc. has an average volume of 1.79M. Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SAIL in relation to earlier this year. Most recently, in February 2025, THOMA BRAVO UGP, LLC, a Major Shareholder at SAIL sold 2,500,000.00 shares for a total of $54,750,000.00.
Business Insider
20-05-2025
- Business
- Business Insider
UiPath (PATH) Receives a Rating Update from a Top Analyst
In a report released on May 18, Matthew Hedberg from RBC Capital maintained a Hold rating on UiPath (PATH – Research Report), with a price target of $13.00. The company's shares closed yesterday at $12.59. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter According to TipRanks, Hedberg is a top 100 analyst with an average return of 20.4% and a 66.80% success rate. Hedberg covers the Technology sector, focusing on stocks such as Olo, ServiceNow, and CrowdStrike Holdings. The word on The Street in general, suggests a Hold analyst consensus rating for UiPath with a $11.97 average price target. The company has a one-year high of $20.51 and a one-year low of $9.38. Currently, UiPath has an average volume of 12.91M.
