UiPath price outlook after smashing third-quarter expectations

By:
on Dec 9, 2021
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  • UiPath shares on Thursday edged slightly lower after reporting FQ3 results.
  • The company announced its most recent quarterly results Wednesday after the close.
  • UiPath outperformed analyst estimates on revenue and earnings.

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On Thursday, UiPath Inc. (NYSE:PATH) shares declined by 2.62% after reporting its most recent quarterly results. The company announced its fiscal third-quarter revenue and earnings Wednesday after markets closed, beating the consensus for analyst expectations.

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UiPath posted FQ3 non-GAAP earnings per share of $0.00, beating the average analyst estimate of -$0.04. On the other hand, its GAAP EPS of -$0.23 missed the expectation of -$0.13, while revenue for the quarter increased by nearly 50% from the same quarter a year ago to $220.82, exceeding estimates by $11.59 million.

The stock has plunged by 32.50% since going public in April, thus creating an exciting opportunity to buy.

Is UiPath still overvalued?

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From an investment perspective, UiPath shares trade at a steep P/S ratio of 32.46, making the stock less attractive to bargain hunters. Its P/B value of 12.89 could also keep off potential value investors.

However, analysts expect its bottom line to improve by more than 82% this year, before rising at an average annual rate of 35% over the next five years. 

Therefore, it could be an exciting option for long-term growth investors.

Source – TradingView

Technically, the stock seems to have recently bounced off the trendline support to surge above the trendline resistance in a descending channel formation. As a result, the stock has recovered from the oversold conditions of the 14-day RSI.

Therefore, investors could target extended rebound profits at about $50.95, or higher at $56.14, while $42.02 and $37.15 are crucial support zones.

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