Teal Linde -BNN - TOP PICKBusted IPO.
UiPATH (PATH NYSE)
UiPath is being recommended as a fallen angel. UiPath is the industry leader in providing robotic process automation software solutions. More specifically, the company develops software to automate repetitive digital tasks normally performed by people. The technology emulates how humans read computer screens (using AI computer vision) and gives users access to pre-built automation components that can be combined to automate routine processes. The company had an initial public offer (IPO) in 2021 trading around $75 on opening day back during covid when automation and digitization was a big deal, but now trades below $13, down over 83 per cent, as the company’s growth has slowed down dramatically. But even today, the company is expected to grow revenues 11 per cent and 13 per cent over the next two fiscal years, respectively. The company is trading around 29 times next year’s expected earnings per share (EPS) which isn’t a bargain. But we consider it fair considering the company’s leadership position, high insider ownership, exposure to AI driven automation, and with net cash of $1.7 billion representing roughly one fourth of the company’s value.