Short covering could become a tailwind for PATH in 2024
Every day for the next three weeks, we're going to highlight one of Schaeffer's top 12 picks for 2024. For today, we have software robotics stock UiPath Inc (NYSE:PATH). To access the entirety of the 2024 report, click here.
If you are looking for a potential " turnaround play" for your portfolio in 2024, software name UiPath (PATH) looks like a good pick. In December, the shares broke out above a two-year basing range between $11 and $21, while also enjoying a post-earnings bull gap after their Nov. 30 report. The successful earnings report could be attributed to a top-and bottom-line beat, as well as spiking operating margins and revenue growth that surpassed analyst expectations.
Short interest peaked in mid-August and is slowly rolling over, which suggests short covering could become a tailwind for the shares. There is also plenty of room for bull notes to roll in, per the 10 of 16 following brokerages that carry a " hold" recommendation, as well as the average 12-month price target of $23.24, which is a nearly 10% deficit to current trading levels.
