PATH - UiPath: Still Unloved
2024-04-18 08:11:45 ET
Summary
- UiPath's financial performance remains strong, with solid growth and improving profitability.
- The market remains skeptical of UiPath's business though, which could be due to competition concerns and uncertainty about the long-term viability of RPA.
- UiPath's valuation appears low given the company's financials and dominance of the RPA market, but it is unclear what could help the stock rerate higher.
I have alternated between thinking generative AI is a tailwind for UiPath ( PATH ) and suspecting that it will ultimately end up disrupting the company. The company's financial performance remains impressive though, with strong growth at scale and a recent transition to profitability. The market appears skeptical, as UiPath's valuation is quite low relative to peers. Some of this is likely due to the fact that UiPath's cloud business is still building. UiPath may also be suffering from competition concerns due to the complimentary nature of RPA with Microsoft's business. Despite this, UiPath has a dominant position in the RPA market and could be an attractive long if the share price drops into the mid-teens....
UiPath: Still Unloved