Home » UiPath Shares Sink to New Depths on Revenue Guidance Shortfall >PATH
By Colin Kellaher
Shares of UiPath Inc. tumbled nearly 25% and hit a record low Thursday after the enterprise automation software company posted disappointing revenue guidance, prompting a raft of analysts to cut their price targets on the stock.
The New York company, which also reported a wider-than-expected fourth-quarter loss, said it expects first-quarter revenue of $223 million to $225 million and full fiscal 2023 revenue of $1.075 billion to $1.085 billion, shy of the $247 million and $1.18 billion, respectively, that analysts polled by FactSet were expecting.
UiPath said its guidance reflects its exposure in Eastern Europe and Russia, as it is pausing its business in Russia as a result of the invasion of Ukraine, as well as foreign-exchange headwinds and a leadership transition in its go-to-market strategy.
Analysts at Truist cut their price target on UiPath shares to $55 from $75 but maintained their “buy” rating on the stock, saying they believe the company’s issues are episodic. Truist also said investors should use weakness in the stock as a buying opportunity.
Mizuho analysts slashed their price target to $40 from $70 but also kept a “buy” rating on the stock, saying they remain positive on UiPath’s long-term growth potential.
Several other Wall Street firms also cut their price targets but maintained their current ratings.
UiPath shares were recently changing hands at $22.03, down 24.1%, after falling to $21.85–their lowest level since the company went public last April–earlier in the session. The stock is down more than 75% from its all-time high of $90 reached last May.