Is PATH a good stock to buy? We came across a bullish thesis on UiPath, Inc. on Montana Insights’s Substack by Montana Matos. In this article, we will summarize the bulls’ thesis on PATH. UiPath, Inc.’s share was trading at $11.17 as of June 8th. PATH’s trailing and forward P/E were 18.73 and 14.14 respectively according to Yahoo Finance.
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UiPath, Inc. provides an automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States and internationally. PATH is being mispriced by the market as a legacy robotic process automation company facing obsolescence from generative AI, while the bullish thesis argues the company is actually becoming critical infrastructure for the emerging agentic AI era. The market assumes large language models will replace UiPath’s software, but enterprises still require controlled execution, governance, compliance, auditability, and workflow orchestration to deploy AI safely in production environments.
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UiPath’s Maestro platform positions the company as the orchestration layer coordinating humans, bots, AI agents, and enterprise systems, allowing it to benefit from AI adoption rather than being displaced by it. The thesis emphasizes that AI remains probabilistic and reasoning-oriented, whereas UiPath provides deterministic execution, particularly valuable in regulated industries such as banking, healthcare, and insurance where reliability and traceability are essential.
Rather than shrinking UiPath’s addressable market, agentic automation could significantly expand it by enabling more complex multi-step workflows and increasing value captured per customer. Financially, the company’s metrics do not support a decline narrative, with sequential growth reacceleration, approximately $1.78 billion in ARR growing 11% year-over-year, 85% gross margins, $1.7 billion in cash, and a customer base including roughly 65% of the Fortune 500.
The thesis also highlights nearly 950 companies currently piloting Maestro, creating significant optionality if conversions accelerate through 2025 and 2026. With the stock priced for stagnation after falling sharply, the upside scenario suggests shares could reach $30–$40 within 12 months, while long-term leadership in agent orchestration could create substantially larger returns through ARR acceleration, multiple expansion, and narrative re-rating.
Previously, we covered a bullish thesis on UiPath Inc. (PATH) by Alexandru Dragut in October 2024, which highlighted the company’s ARR growth, expanding enterprise adoption, AI-driven automation capabilities, and path toward profitability through its subscription-based model. PATH’s stock price has depreciated by approximately 11.06% since our coverage. Montana Matos shares a similar view but emphasizes UiPath’s role as critical infrastructure for agentic AI orchestration and workflow governance.
UiPath, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held PATH at the end of the first quarter which was 45 in the previous quarter. While we acknowledge the risk and potential of PATH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PATH and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
