EPAM Systems (EPAM) Upgraded to “Buy” by Zacks Investment Research

EPAM Systems (NYSE:EPAM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Wednesday. The brokerage presently has a $149.00 target price on the information technology services provider’s stock. Zacks Investment Research‘s price target indicates a potential upside of 10.39% from the stock’s previous close.

According to Zacks, “EPAM Systems is benefiting from growth across geographies and all industry verticals. Digital transformation, focus on customer engagement and product development are key growth drivers. EPAM has been steadily gaining traction in its IT services business. Acquisitions have been a key driving factor which has enabled it entering new markets, diversify and broaden product portfolio. EPAM’s healthy operating cash flow generation capability has helped it invest in growth initiatives. Shares have outperformed the industry in the past year. Estimates have been going up ahead of the company's Q4 earnings release. The company has positive record of earnings surprises in recent quarters. Nonetheless, as majority of EPAM’s delivery centers are located in Central and Eastern Europe, the company’s prospects are currently prone to a massive geopolitical risk due to the ongoing conflict between Russia and Ukraine.”

Several other equities research analysts have also commented on EPAM. Cantor Fitzgerald boosted their price objective on shares of EPAM Systems from $139.00 to $146.00 and gave the stock an “overweight” rating in a research note on Friday, November 2nd. KeyCorp dropped their price objective on shares of EPAM Systems from $146.00 to $144.00 and set an “overweight” rating on the stock in a research note on Friday, November 2nd. Jefferies Financial Group assumed coverage on shares of EPAM Systems in a research note on Tuesday, November 20th. They set a “hold” rating and a $134.00 price objective on the stock. JPMorgan Chase & Co. boosted their price objective on shares of EPAM Systems from $152.00 to $157.00 and gave the stock an “overweight” rating in a research note on Friday, November 2nd. Finally, Citigroup boosted their price objective on shares of EPAM Systems from $142.00 to $153.00 and gave the stock a “buy” rating in a research note on Friday, October 5th. Three equities research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average target price of $142.87.

Shares of EPAM traded up $1.72 during trading hours on Wednesday, reaching $134.97. 6,276 shares of the company traded hands, compared to its average volume of 308,578. EPAM Systems has a 12 month low of $102.03 and a 12 month high of $144.19. The company has a current ratio of 5.11, a quick ratio of 5.11 and a debt-to-equity ratio of 0.02. The firm has a market capitalization of $7.01 billion, a price-to-earnings ratio of 47.41, a PEG ratio of 1.59 and a beta of 1.33.

EPAM Systems (NYSE:EPAM) last posted its quarterly earnings data on Thursday, November 1st. The information technology services provider reported $1.17 EPS for the quarter, topping the consensus estimate of $0.84 by $0.33. EPAM Systems had a net margin of 8.60% and a return on equity of 19.19%. The business had revenue of $468.20 million for the quarter, compared to analyst estimates of $466.97 million. During the same quarter in the previous year, the firm posted $0.92 earnings per share. EPAM Systems’s quarterly revenue was up 24.0% on a year-over-year basis. On average, research analysts forecast that EPAM Systems will post 3.42 EPS for the current fiscal year.

Hedge funds and other institutional investors have recently modified their holdings of the company. Janus Henderson Group PLC lifted its stake in shares of EPAM Systems by 46.2% in the second quarter. Janus Henderson Group PLC now owns 3,358 shares of the information technology services provider’s stock worth $418,000 after buying an additional 1,061 shares in the last quarter. Fox Run Management L.L.C. purchased a new position in shares of EPAM Systems during the third quarter valued at approximately $304,000. Kornitzer Capital Management Inc. KS purchased a new position in shares of EPAM Systems during the third quarter valued at approximately $11,136,000. Maryland Capital Management raised its holdings in shares of EPAM Systems by 1.0% during the third quarter. Maryland Capital Management now owns 133,042 shares of the information technology services provider’s stock valued at $18,320,000 after purchasing an additional 1,300 shares during the last quarter. Finally, State Board of Administration of Florida Retirement System raised its holdings in shares of EPAM Systems by 1.4% during the third quarter. State Board of Administration of Florida Retirement System now owns 68,768 shares of the information technology services provider’s stock valued at $9,469,000 after purchasing an additional 929 shares during the last quarter. Hedge funds and other institutional investors own 92.54% of the company’s stock.

EPAM Systems Company Profile

EPAM Systems, Inc provides software product development and digital platform engineering services primarily in North America, Europe, Asia, and Australia. It offers software product development services, including product research, customer experience design, prototyping, program management, component design and integration, lifecycle software testing, product deployment, end-user customization, performance tuning, product support and maintenance, managed services, and porting and cross-platform migration.

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