UiPath Inc. (PATH): A Bull Case Theory

We came across a bullish thesis on UiPath Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on PATH. UiPath Inc.'s share was trading at $14.12 as of December 1st. PATH’s trailing and forward P/E were 462.00 and 18.98 respectively according to Yahoo Finance.

UiPath’s investment case has evolved into a reflection on key-man risk. Following the appointment of Rob Enslin as co-CEO in early 2024, founder Daniel Dines appeared to lose focus, stalling momentum. This underscores the fragility of founder-led models when leadership conviction wanes. Despite this, UiPath remains compelling at a $6B market cap, trading just above 4x sales, with positive free cash flow per share and renewed strategic potential through agentic automation. Initially, UiPath’s advantage lay in its RPA-driven distribution, expected to yield superior data acquisition and automation flywheels.

The thesis also foresaw semantic automation expanding UiPath’s scope beyond mechanical tasks and low-code solutions accelerating innovation. Yet, execution lagged; while peers like Palantir accelerated amid enterprise AI adoption, UiPath’s growth decelerated, and DBNR declined from 115% to 108%.

Still, fundamentals show resilience — revenue has grown 30% since the initial thesis, and free cash flow generation has turned positive, signaling durable customer stickiness and improving operational efficiency. The launch of UiPath Maestro marks a strategic inflection point: by combining AI, automation, and human oversight, Maestro cuts processing time by up to 75% and manual effort by 60%.

Complementary innovations such as UiPath Data Fabric and IXP for semantic automation strengthen its platform depth. Should Dines refocus, agentic automation could materially lift margins and free cash flow, creating asymmetric upside. While key-man risk tempers conviction, UiPath’s improving fundamentals, emerging agentic capabilities, and stabilized customer metrics make it a renewed, albeit cautious, watchlist candidate.

Previously we covered a bullish thesis on UiPath Inc. (PATH) by Alexandru Dragut in October 2024, which highlighted strong ARR growth, expanding enterprise clients, and progress toward profitability through AI-driven automation. The company’s stock price has appreciated approximately 12.42% since our coverage. This is because fundamentals improved. Antonio Linares shares a similar view but focuses on leadership challenges and agentic automation potential.

UiPath Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held PATH at the end of the second quarter which was 41 in the previous quarter. While we acknowledge the potential of PATH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.