Surinder Thind, an analyst from Jefferies, reiterated the Buy rating on Epam Systems (EPAM – Research Report). The associated price target was lowered to $273.00.
Surinder Thind has given his Buy rating due to a combination of factors that indicate a positive outlook for Epam Systems. Despite a recent decline in stock price, Thind views the company’s strategic decision to prioritize growth over margins as a beneficial move. This approach is expected to lead to a significant increase in discretionary project starts over the next 12-18 months, which should positively impact the stock’s performance.
Thind also notes that there has been a noticeable shift in client sentiment, with increased openness to discretionary projects and a rise in tech budgets for 2025. This optimism is supported by Epam’s sequential growth across various industry verticals and a positive year-over-year organic growth for the first time since early 2023. Although there are challenges such as pricing pressures and utilization issues in high-cost regions, the overall investment in advanced technology and talent retention is seen as crucial for long-term success.
In another report released on February 24, Mizuho Securities also reiterated a Buy rating on the stock with a $267.00 price target.