Is $17 a Share Realistic for UiPath (Path) or Wishful Thinking?

As agentic AI and the automation of workplace tasks become a bigger story in the second half, I think it’s becoming tough to ignore shares of UiPath (NYSE:PATH) any longer. At this juncture, it’s one of the most interesting AI automation stocks to give a second look while it’s still well over 80% from its short-lived 2021 all-time high, just shy of $80 per share.

While PATH stock has been rather tough to own in recent years, I do think it’s not at all outside the realm of reason to imagine the stock making a run to $17 per share at some point over the next 12 months. JPMorgan analyst Mark Murphy, who has a $17 per-share price target on the stock, thinks that past execution issues can be fixed and that the longer-term opportunity at hand may ultimately shine through as the firm navigates through what remains of its headwinds.

The rise of agentic AI could set the stage for a run back to $17 per share

Indeed, AI agents are becoming a buzzword of sorts as the AI boom enters its next era of growth. As a firm dedicated to robotic process automation, I would have expected shares of PATH to have reignited by now, given that many pundits see agents as the next big opportunity in AI.

And though it’s difficult to tell which firms will be the big winners as AI agents head to work and robotic process automation enters the mainstream, I do find UiPath to be on the right path (forgive the pun) after a respectable quarterly earnings beat and guidance hike delivered in late-May and the potential for an acceleration in demand at some point down the road.

As far as the agentic opportunity is concerned, it’s still in the earlier innings. That is, if the game has even kicked off yet. Either way, I’m quite encouraged by the slew of new features the firm introduced to its agentic automation platform.

Whether we’re talking about the new custom AI agent builder, Maestro for orchestration, or, perhaps more intriguing, its self-healing agent, which can repair itself from broken automations, it’s clear that the innovation pipeline is packed and could draw greater interest from firms seeking enterprise-grade automation solutions as more firms become willing to spend on agentic efforts to keep up or stay ahead of industry rivals.

Of course, UiPath isn’t the only big player in the agentic AI race. But it’s one pure-play that could be overdue for fierce tailwinds as adoption of such cutting-edge products experiences a jolt of sorts. 

UiPath looks like a relative value play as far as agent plays are concerned

At the time of writing, PATH stock trades at 22.62 times forward price-to-earnings (P/E), not at all a high price to pay for a misunderstood mid-cap ($6.7 billion market cap) company that could soon see headwinds be replaced by tailwinds. Of course, a lot of things are going to need to go if PATH shares are to hit the Street-high target of $17 per share. However, with new features added on top of the platform, there is no shortage of drivers.

The only question is whether UiPath’s offering can fare well against the competition as a bit more of that AI spending goes towards automation software.

For now, I think $17 per share is a realistic high watermark for PATH as we head into year’s end. If the firm can add to its recent strengths after a robust quarterly result, perhaps the name is a standout comeback play in the tech scene. Rising adoption for automation and agents, smart collabs with big names in the sector, and the latest beat-and-raise number, I think, are all positive signs for PATH as it returns to the high road.

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