UiPath Gains Ground on Morgan Stanley's Bullish Outlook Shift

UiPath (NYSE:PATH) closed at $16.85 on Monday with a modest uptick of 0.06%, marking continued momentum following an upgraded price target from Morgan Stanley. The robotic process automation pioneer, which specializes in end-to-end automation powered by AI, saw trading activity surge to 31.3 million shares—representing a 15% surge above its typical three-month average of 27.1 million shares.

Market Backdrop: Tech Infrastructure Under Pressure

Broader equities faced headwinds Monday as the S&P 500 retreated 0.35% to 6,906, while the Nasdaq Composite slipped 0.50% to 23,474. Within the software infrastructure sector, individual stock performance diverged from macro trends, with company-specific catalysts taking precedence. Alcoa and BP displayed varying directional moves, underscoring how sector-level dynamics no longer drive uniform behavior across peer groups.

What’s Driving UiPath’s Resurgence

The catalyst for today’s gain traces back to Morgan Stanley’s strategic price target adjustment, raising its rating from $15 to $19—implying 12.8% upside from Monday’s close. The analyst maintained its Equal Weight stance despite the hike, signaling a measured confidence rather than enthusiasm.

This edges higher momentum reflects deeper market recognition of UiPath’s trajectory. The company’s Q3 earnings report, released in early December, exceeded consensus expectations, reigniting investor interest in its positioning within the exploding autonomous AI agent market. Over the past month, the stock has accumulated gains exceeding 20% as confidence builds around the company’s ability to fuse traditional automation infrastructure with next-generation agentic intelligence.

Strategic partnerships bolster the investment thesis. UiPath recently announced collaborations with OpenAI, Nvidia, and Snowflake, cementing its role as a bridge between legacy RPA workflows and cutting-edge AI capabilities. An additional tailwind arrives with UiPath’s scheduled inclusion in the S&P MidCap 400 index effective January 2, 2026.

The Longer View

Today’s measured gains stand in sharp contrast to UiPath’s brutal IPO aftermath. Since its 2021 public debut, the stock has surrendered nearly 75% of its value, reflecting the harsh reality that automation software faced before the AI momentum shift. The current recovery illustrates how quickly market narratives can reset around credible technological inflection points and tangible execution evidence.

Investors monitoring UiPath should track two variables: the company’s ability to translate Q3 earnings strength into sequential revenue growth, and how effectively it captures demand from enterprises building autonomous workflows powered by agentic AI models.