Morgan Stanley Raises UiPath Price Target to $19 After Q3 Beat and AI Partnerships
Morgan Stanley raised its price target for UiPath from $15 to $19, a 12.8% upside, after the company beat Q3 earnings and announced partnerships with OpenAI, Snowflake and Nvidia. Trading volume reached 31.3M on Dec. 29, 15% above average, and UiPath joins the S&P MidCap 400 Jan. 2, 2026.
1. Morgan Stanley Raises Price Target
Morgan Stanley analysts increased their 12-month price target for UiPath from $15 to $19, representing a potential upside of approximately 12.8%. This note reiterates an Equal Weight rating on the automation and AI software provider and follows the company’s recent profitability milestone, signaling growing confidence in UiPath’s roadmap for AI-driven process automation.
2. Q3 Earnings Beat and Strategic Partnerships
In early December, UiPath reported third-quarter results that surpassed consensus estimates, driven by robust subscription revenue growth and an 83.16% gross margin. Management highlighted several new collaborations with leading AI and cloud platforms, including OpenAI, Snowflake and Nvidia, which are expected to expand the company’s addressable market and accelerate enterprise adoption of agentic automation solutions.
3. Index Inclusion and Trading Dynamics
UiPath is slated to join the S&P MidCap 400 index on January 2, 2026, marking a milestone for the company since its 2021 IPO. Recent trading volume reached 31.3 million shares, roughly 15% above its three-month average of 27.1 million, while the firm’s market capitalization stands near $9.0 billion. Since its listing, UiPath has experienced a cumulative decline of almost 75%, but the stock has climbed more than 20% over the past month amid renewed investor interest.