Today, shares of UiPath (NYSE:PATH) rose as high as 5% during premarket trading before falling lower at the open. Investors in PATH stock may be wondering what could be causing this price action today, as well as what UiPath price predictions are out there.
Well, the upward movement is a result of Morgan Stanley (NYSE:MS) upgrading the robotic process automation (RPA) company’s stock from equal weight to overweight. The price target was maintained at $74, which represents a significant upside of 72%.
Keith Weiss was the Morgan Stanley analyst in charge of the upgrade. While a major concern for investors is competitors such as Microsoft (NASDAQ:MSFT) taking market share, Weiss argued that the RPA market will be large enough for multiple competitors to succeed. He also added that investors concerned with competition “completely dismiss UiPath’s strong positioning for a broader Enterprise Automation platform opportunity longer-term.”
Furthermore, according to the International Data Corporation (IDC), UiPath is a leader in the RPA industry. Indeed, PATH has a market share of 32%. Weiss noted that while the current RPA industry is worth roughly $2 billion, it has the potential to increase to $56 billion in the long term as more companies transition to using RPA to complete daily tasks.
In terms of future developments, Weiss reasons that UiPath has the opportunity to tap into the Enterprise Automation Platform market, which is valued at roughly $15 billion. The value of the market could possibly skyrocket to $40 billion by 2025.
With Morgan Stanley’s upgrade in mind, let’s take a look at how other analysts on Wall Street feel about PATH stock.
UiPath Price Predictions: What Do Other Analysts Think?
- Needham has a price target of $85. This price target implies an upside of 97% from current prices. Analyst Scott Berg expects UiPath to post Q4 earnings per share (EPS) of -19 cents. Additionally, he views the company as a “strong melding of what every growth investor seeks: an industry-leading platform in what might be the fastest-growing sub-sector of software with a massive TAM.”
- Cowen & Co. has a price target of $80. This price target represents an upside of 86%. Analyst Bryan Bergin noted that while the company trades at a high multiple, the total address market (TAM) is poised to grow massively. Bergin sees UiPath benefitting greatly from this due to UiPath’s position as the leader in the RPA market.
- Barclays has a price target of $71. This target represents an upside of 65%. Analyst Raimo Lenschow expressed concerns about near-term volatility. However, he believes that the long-term thesis for UiPath to succeed as a RPA leader is still intact.
- Finally, UiPath has an average price target of $69.86 across 22 firms.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.