Citi Just Upgraded UiPath Stock. Here's Why.

Citi’s senior analyst Yitchuin Wong says the post-earnings weakness in UiPath (PATH) shares has created an attractive buying opportunity for long-term investors. 

PATH has been under immense pressure in recent sessions after its third-quarter revenue guidance of $442.5 million came in shy of Street estimates on Sept. 3. 

Versus its year-to-date high, UiPath stock is down about 25% at the time of writing. 

How High Can UiPath Stock Fly?

In his research note, Wong highlighted PATH’s positioning as an orchestration layer for corporate artificial intelligence (AI) deployment as a primary driver for long-term upside.

He initiated coverage of the multinational software company with a “Buy” rating and assigned a $23 price target, which signals potential upside of more than 60% from current levels. 

From a technical perspective, PATH shares remain above their 50-day moving average (MA), with an RSI in the late 30s indicating they’re approaching oversold territory where buyers tend to step back in. 

Why Is Citi Bullish on PATH Shares?

Enterprise spending is steadily shifting toward integrating AI directly into core business processes.

UiPath shares are attractive because the company’s expanded platform seamlessly bridges legacy robotic process automation (RPA) with modern generative AI agents, APIs, and computer vision.

This makes PATH a mission-critical operational engine rather than a discretionary software add-on, helping justify its premium price-to-earnings (P/E) ratio of more than 38x, Wong told clients.

With management preparing to showcase platform evolution and product roadmap at the upcoming Investor Day, Citi views the recent sell-off as an attractive entry point for long-term investors. 

It's also worth mentioning that UiPath has raised its full-year revenue outlook to at least $1.789 billion, which beats the current Zacks Consensus Estimate of $1.78 billion.

How Wall Street Recommends Playing UiPath

Note that other Wall Street analysts also believe that PATH stock’s recent pullback has gone a bit too far. 

According to Barchart, while the consensus rating on UiPath sits at “Hold,” the mean price target of $16.53 signals potential for a significant rally from current levels. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.