CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our target price by $1 to $13, on an EV/S multiple of 3.2x our FY 27 (Jan.) sales projection of $1.781B, below its three-year average. We decrease our FY 27 EPS estimate to $0.79 (from $0.81), and trim FY 28's estimate to $0.89 (from $0.91). PATH reported Q1 FY 27 revenue of $418M, up 17% Y/Y (15% ex-FX), with ARR reaching $1.901B, growing 11% Y/Y. Net new ARR of $49M ($40M ex-FX) declined sequentially from $70M in Q4, though net retention improved to 109% (108% ex-FX), marking the first expansion in several quarters. We view the strong enterprise momentum positively, with $1M-plus ARR customers growing 18% to 374 and $100K-plus ARR customers up 11% to 2,624, as AI becomes a key deal driver expansion deals including AI are 6x larger than those without. Non-GAAP operating margin expanded over 250 bps Y/Y to 22%. We reiterate our Buy rating, though we note concerns around modest net new ARR increase ex-FX and management commentary on customer drag at the low end of the market.