UiPath Inc "Takeaways From Our NDR" (Neutral) Sultan

研报英文原文证据摘录

UiPath Inc "Takeaways From Our NDR" (Neutral) Sultan

Forecast returns

Forecast price appreciation 14.0%

Forecast dividend yield 0.0%

Forecast stock return 14.0%

Market return assumption 9.1%

Forecast excess return 4.9%

Company Description

UiPath is a software provider of automation tools, primarily focused on discovering,

automating, monitoring, and improving enterprise workflow through UI- and API-based

technologies to improve business process efficiency. The company's Business Automation

Platform (BAP) has expanded into process and task mining, communications data mining, and

UI testing, and is increasingly focused on agentic AI orchestration.

Valuation Method and Risk Statement

Our price target is based on an applied EV/CY27E FCF multiple, informed by our regression

analysis which takes into consideration profitability as well as revenue growth assumptions

compared to infrastructure and automation software names. Key upside risks to the upside

include 1.) improved execution on PATH's broader vision for agentic AI, driving stabilization

and acceleration in net dollar retention, growing existing customer spend, 2.) Increased

momentum in larger customer adds, and potentially total customer adds if they are able to

execute at higher levels, 3.) efficiency improvements and higher incremental margin sales

performance on the back of an improving software spend backdrop in 2025, 4.) Increased

breadth and execution of partnerships, such as SAP migrations acting as a key tailwind over a

multi-year period.

Key downside risks are 1.) increasing competition for task and workflow automation from

large tech platforms who are increasingly embedding AI technology into their own systems,

2.) the state of the macroeconomy and the impact of a potential downturn on businesses and