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Epam Systems: Strong Q1 Performance and Positive Outlook Justify Buy Rating and Target Price Increase

Epam Systems: Strong Q1 Performance and Positive Outlook Justify Buy Rating and Target Price Increase

Needham analyst Mayank Tandon reiterated a Buy rating on Epam Systems (EPAMResearch Report) today and set a price target of $215.00.

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Mayank Tandon has given his Buy rating due to a combination of factors including Epam Systems’ strong performance in the first quarter, which exceeded expectations thanks to improved organic growth trends. Despite challenging macroeconomic conditions, the company showed a year-over-year growth of 1.4%, surpassing the anticipated flat growth, indicating a robust demand from clients.
Furthermore, the company’s guidance for the second quarter suggests ongoing positive momentum, and the forecast for fiscal year 2025 has been raised, reflecting confidence in sustained growth. Additionally, the announcement of Balazs Fejes succeeding Arkadiy Dobkin as CEO in 2025 is seen as a positive leadership transition. These factors collectively support the decision to maintain a Buy rating and increase the target price to $215.

In another report released today, Barclays also maintained a Buy rating on the stock with a $200.00 price target.

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