RBC Cuts UiPath (PATH) PT to $17 Highlighting 2026 as a Year of Divergence for Software Sector

UiPath Inc. (NYSE:PATH) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, RBC Capital lowered the firm’s price target on UiPath to $17 from $19, while keeping a Sector Perform rating on the shares. The firm suggested that 2026 will be a year of divergence for the software sector. Companies strategically positioned for enterprise AI adoption are expected to see clear tailwinds, while less prepared firms may struggle under the AI is the death of software narrative. Although management teams are issuing conservative early 2026 guidance, the firm noted that enterprise spending is stabilizing and GenAI is actively fueling innovation.

Earlier on December 10, RBC Capital analyst Matthew Hedberg raised the firm’s price target on UiPath Inc. (NYSE:PATH) to $19 from $16, while maintaining a Sector Perform rating on the shares. RBC Capital expressed growing confidence in TeraWulf following a solid Q3 2025 earnings report and noted that the results pointed toward a stabilization in net new annual recurring revenue.

While the firm emphasized that future execution remains critical, Hedberg was encouraged by improving profitability and the potential for these positive business trends to persist. RBC Capital concluded that if UiPath Inc. (NYSE:PATH) can maintain this steady operational momentum, the stock is well-positioned for further upside.

UiPath Inc. (NYSE:PATH) provides an end-to-end automation platform that offers a range of robotic process automation/RPA solutions primarily in the US, Romania, the UK, the Netherlands, and internationally.

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. This article is originally published at Insider Monkey.