UiPath Inc. (PATH): A Bull Case Theory

We came across a bullish thesis on UiPath Inc. on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on PATH. UiPath Inc.'s share was trading at $14.11 as of January 28th. PATH’s trailing and forward P/E were 34.19 and 19.53 respectively according to Yahoo Finance.

UiPath (PATH) is emerging from a prolonged downturn as it repositions itself from a legacy robotic process automation (RPA) provider into a core enabler of agentic AI-driven enterprise workflows. After declining over 75% from its highs amid concerns that “RPA was dying,” PATH has introduced Maestro, an orchestration layer that integrates RPA bots with modern AI agents such as Copilot, Gemini, and OpenAI models.

Rather than replacing RPA, Maestro enhances it, transforming UiPath into a unified operating system that coordinates complex, end-to-end processes across multiple AI tools. This shift materially expands PATH’s addressable market from a ~$4B RPA niche to a projected $50B+ agentic AI opportunity, while reinforcing stickiness among its existing base of over 10,600 customers, including 65% of the Fortune 500.

Operationally, UiPath is showing early signs of an inflection. Q3 marked its first GAAP-profitable quarter, supported by gross margins around 85% and improving operating leverage as sales and marketing intensity declines. Revenue growth has begun to reaccelerate, with ARR up 11% YoY and customer expansion remaining positive at 108% net revenue retention and 98% gross retention. Importantly, Maestro adoption is moving from pilot to production, with hundreds of customers live, accelerating deployment cycles, and documented use cases delivering tens to hundreds of millions of dollars in cost savings across financial services, healthcare, insurance, energy, and the public sector.

While risks remain around execution, competition from hyperscalers, and the pace of revenue acceleration, the market continues to value PATH as a slow-growth software vendor rather than a strategic AI platform. If Maestro drives sustained 20%+ growth and margin expansion toward 25–30%, a material rerating is plausible. Under this scenario, PATH’s current valuation implies significant upside, with a credible path toward an $80 share price as agentic automation becomes central to enterprise AI deployment.

Previously, we covered a bullish thesis on UiPath Inc. (PATH) by Alexandru Dragut in October 2024, which highlighted the company’s subscription-based automation platform, strong ARR growth, enterprise customer expansion, and progress toward profitability. PATH’s stock price has appreciated by approximately 12.34% since our coverage due to improving sentiment around AI automation. Oliver | MMMT Wealth shares a similar view but emphasizes the agentic AI pivot via Maestro and valuation rerating potential.

UiPath Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held PATH at the end of the third quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of PATH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PATH and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.