Morgan Stanley Lifts UiPath Price Target to $19, Signaling Confidence in AI Automation Strategy

UiPath (NYSE:PATH) is drawing increased analyst attention following Morgan Stanley’s bullish reassessment. The investment bank elevated its price target from $15 to $19—representing potential 12.8% upside from Monday’s closing level of $16.85—while maintaining its Equal Weight stance on the stock. This upgrade reflects growing conviction around the automation software provider’s pivot toward AI-powered solutions.

Momentum Building Despite Market Headwinds

UiPath edged up 0.06% to $16.85 on Monday, with trading volume surging to 31.3 million shares—a 15.6% spike above the three-month average of 27.1 million. The modest daily movement masks a more significant turnaround: the stock has climbed approximately 20% over the past month as investors reassess the company’s trajectory from a 75% post-IPO slump (since its 2021 debut).

The broader market environment proved challenging, with the S&P 500 declining 0.35% to 6,906 and the Nasdaq Composite falling 0.50% to 23,474. Within this mixed backdrop, company-specific catalysts are overshadowing sector-wide dynamics.

AI Partnerships Reshape the Investment Narrative

UiPath’s transformation hinges on strategic partnerships that position it at the intersection of automation and artificial intelligence. The company has aligned with major technology players including OpenAI, Snowflake (NYSE:SNOW), and Nvidia (NASDAQ:NVDA), creating an ecosystem designed to deliver next-generation agentic AI capabilities.

This positioning comes on the heels of December’s Q3 earnings beat, which validated management’s execution on profitability metrics. The combination of strong financial results and industry collaborations has rekindled investor interest in the automation automation space.

Structural Tailwind: S&P MidCap 400 Inclusion

A notable catalyst awaits on January 2, 2026, when UiPath will join the S&P MidCap 400 index. This inclusion could trigger passive fund inflows and broaden the stock’s institutional ownership base. For a company working to sustain momentum after years of underperformance, this structural support provides an additional lever for price appreciation.

The Morgan Stanley upgrade, combined with index inclusion and strengthening AI credentials, suggests analysts see meaningful upside in UiPath’s ability to monetize the automation-plus-AI opportunity over the next 12 months.