UiPath's (PATH) artificial intelligence-driven deal momentum and improved customer retention were encouraging, RBC Capital Markets said in a Friday note.
Analysts said they are watching for signs of net new annual recurring revenue stabilization and potential acceleration.
RBC said UiPath raised its fiscal 2027 guidance as management turned more positive on underlying business trends, pipeline health, a more stable demand environment and customer momentum.
The investment firm noted continued strength in AI-driven deal activity and increasing adoption of the company's agentic offerings, which are supporting larger expansion deals and improved customer engagement.
RBC maintained a sector perform rating and $12 price target on the stock.
Shares of UiPath were up 1.2% in Friday afternoon trading.
Price: $11.72, Change: $+0.14, Percent Change: +1.21%