UiPath shares drop 3% despite Citi's Buy rating and $23 target amid mixed investor sentiment.

UiPath shares fell 3% to $13.55 even after Citi initiated coverage with a Buy rating and a $23 price target, citing UiPath's role in AI orchestration. The decline follows a third-quarter revenue guide below expectations, causing investor caution despite the company's profitable, debt-free status and strong customer growth. Competitors Pegasystems and C3.ai also faced pressure amid broader concerns about AI monetization. UiPath's upcoming investor day on September 22 is seen as a key event that could shift market sentiment depending on management's outlook and strategy updates.