Needham analysts reaffirmed a Hold rating on UiPath (NYSE:PATH) reflecting steady, though incremental, progress in the robotic process automation (RPA) market. Feedback from a key implementation partner suggests gradual demand recovery, bolstered by adoption of newer tools like task mining and process discovery among more established customers.
The report highlighted growing interest in UiPath’s offerings in regions such as Africa and the Middle East, though demand remains largely unchanged in the Americas and Europe. Notably, the introduction of generative AI features is viewed as a complement to RPA rather than a disruptive replacement, further solidifying UiPath’s role in automation workflows.
Cloud adoption continues to gain traction, with most new customers opting for UiPath’s cloud-based solutions. However, the shift from on-premises systems has been limited, as on-prem remains a viable choice for new implementations.
Among its peers, UiPath stands out for its robust software capabilities, earning recognition alongside Automation Anywhere as a top-tier RPA provider. While demand improvements offer promise, the Hold rating underscores a cautious approach as the company navigates a competitive and evolving market.