UiPath (PATH) has acquired UK-based AI company Peak, supercharging its vertical AI strategy and expanding its agentic automation platform. The company announced the acquisition alongside its Q4 FY25 results yesterday. However, PATH stock fell nearly 17% in pre-market trading as its outlook missed expectations. Following these developments, Mizuho reduced its price target on PATH stock citing a weak outlook.
Notably, UiPath is an enterprise automation software company specializing in AI-powered robotic process automation (RPA). Meanwhile, Peak’s AI platform helps businesses manage inventory and set prices more efficiently. Peak’s strategic partnerships with AWS, Snowflake (SNOW), UiPath, and SAP (SAP) enhance its ability to drive AI adoption across industries.
UiPath Scales AI Ambitions
By integrating Peak’s specialized AI applications into its platform, UiPath aims to enhance industry-specific automation solutions. Peak’s emphasis on speeding up AI adoption in industries such as retail and manufacturing will help UiPath expand its market presence more rapidly. This collaboration will also support the development of advanced, AI-driven agentic applications tailored to specific industries.
Additionally, customers of both UiPath and Peak can now leverage their combined technologies to drive higher revenue and improved margins. Their ongoing partnership has already delivered such growth opportunities.
Mizuho Lowers PATH Price Target Despite Optimism on Peak Deal
Following its results, Mizuho Securities has lowered its price target on PATH stock from $14.00 to $12.00 while maintaining a Hold rating. Mizuho stated the company’s outlook reflects broader macroeconomic uncertainty, impacting the timing of deal closures. In context, UiPath projects 6.8% year-over-year revenue growth for FY26, falling short of the 11% consensus estimate.
Additionally, Mizuho’s analyst praised UiPath’s strategic acquisition of Peak but noted that investors remain cautious about the long-term demand for RPA amid potential industry disruptions.
Is UiPath a Good Stock to Buy?
Looking ahead, Wall Street analysts have a Hold consensus rating on PATH stock based on four Holds assigned in the past three months. The average PATH price target of $15.33 per share implies a 29.6% upside potential.
Year-to-date, PATH stock has declined by 7%.
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