Mizuho analyst Siti Panigrahi downgraded shares of UiPath Inc. PATH,
Wednesday after the software company’s latest earnings report. He wrote that he was “encouraged” by UiPath’s “enterprise/C-Suite go-to-market (GTM) positioning,” but sees different business risks. In particular, Panigrahi noted that “the reorganization’s focus on delivering profitability, and potential disruption of macro and business-oriented product alignment” could depress growth in annual recurring revenue. “While guidance is de-risking in 2H, we expect shares to remain near range until the company makes progress on strategic repositioning,” he wrote. UiPath’s “strategy to focus more on the enterprise will take time to play out, especially in an uncertain macro environment with strong European exposure and competitive threats from ServiceNow…and Microsoft,” Panigrahi continued, adding that he “doesn’t see businesses prioritizing automation in a potentially recessionary environment.” The stock fell more than 20% in premarket trading on Wednesday.
UiPath stock downgraded as repositioning ‘takes time to play out’
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