Needham analyst Scott Berg downgraded UiPath to Hold from Buy without a price target, citing a combination of macro pressure, uncertainty around near-term execution due to a CEO change and a changing go-to-market strategy, and year-over-year margin compression creating an unfavorable near-term financial profile for the downgrade. UiPath reported “mildly disappointing” Q1 sales metrics as large deals faced incremental scrutiny and net new annual recurring revenue was guided 25% lower, the analyst tells investors in a research note. Needham thinks it will take multiple quarters for the company’s changes to start driving meaningful upside to guidance.
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