EPAM Systems: AI-Led Growth and Overdone Pullback Create an Attractive Buy Opportunity

Mayank Tandon, an analyst from Needham, reiterated the Buy rating on Epam Systems. The associated price target is $175.00.

Mayank Tandon has given his Buy rating due to a combination of factors, primarily EPAM’s stronger-than-expected fourth-quarter performance and solid underlying demand trends. The company delivered healthy organic revenue growth on a constant-currency basis, supported by accelerating adoption of its AI-native and AI foundational offerings, which already generated over $105 million in quarterly revenue and are projected to become a major contributor by FY26.

Tandon also notes that while some large AI-related deals are stretching sales cycles, they are paving the way for larger, more strategic engagements later in the year, supporting a constructive medium-term outlook. He believes the sharp share price decline, driven by concerns around the impact of NEORIS’s largest client on near-term growth, is excessive relative to EPAM’s fundamentals and AI opportunity, creating an attractive entry point despite a modest reduction in the price target.