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

Group 1 - UiPath Inc. (NYSE:PATH) is experiencing significant interest from hedge funds, with RBC Capital recently lowering its price target to $17 from $19 while maintaining a Sector Perform rating [1][3] - The year 2026 is highlighted as a pivotal year for the software sector, with companies well-positioned for enterprise AI adoption expected to benefit, while those less prepared may face challenges [1][3] - Despite conservative early guidance for 2026 from management, enterprise spending is stabilizing, and generative AI (GenAI) is driving innovation [1] Group 2 - Prior to the recent downgrade, RBC Capital had raised UiPath's price target to $19 from $16, indicating growing confidence in the company's performance following a solid Q3 2025 earnings report [2] - The Q3 2025 results for UiPath pointed towards stabilization in net new annual recurring revenue, which is a positive sign for the company's future [2] - RBC Capital emphasized the importance of future execution for UiPath, noting improving profitability and the potential for sustained positive business trends [3] Group 3 - UiPath provides an end-to-end automation platform with a focus on robotic process automation (RPA) solutions, primarily operating in the US, Romania, the UK, the Netherlands, and internationally [4]