PATH - 4 Reasons To Buy UiPath Stock

2024-07-02 13:49:40 ET

Summary

• PATH continues to successfully harness AI, particularly excelling in document processing by cultivating its own large language model, which has demonstrated lower error rates than other Gen AI models.
• PATH has seen a significant increase in free cash flow generation, yielding over 4x its historical average at the current share price.
• With a strong liquidity and capital position, PATH has the potential to see increased buyback momentum or engage in strategic M&A.
• PATH presents favorable mean-reversion potential and given the medium-term earnings growth on offer (even after significant revisions), its forward P/E does not look prohibitive.

Introduction

Around 11 months back, we had written a relatively favorable article on UiPath Inc. ( PATH ), a specialist in enterprise automation. While we had talked up the merits of the business, we were not convinced it was the right time to buy the stock and went with a HOLD rating....

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