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Investing.com - Mizuho (NYSE:MFG) raised its price target on EPAM Systems (NYSE:EPAM) to $225.00 from $224.00 on Tuesday, while maintaining an Outperform rating on the stock. The technology consulting firm, with a market capitalization of $8.45 billion, has maintained strong financial health with a current ratio of 3.17.
The price target adjustment follows EPAM’s strong second-quarter 2025 results and the company’s decision to raise the low end of its 2025 organic constant currency guidance to +3% to +5%, up from the previous +2% to +5%. According to InvestingPro data, eight analysts have recently revised their earnings estimates upward for the upcoming period.
Mizuho noted that EPAM’s accelerating organic growth stems from two key factors: a recovery in demand for the company’s services driven by customer interest in generative AI, and EPAM’s lack of exposure to certain struggling end-markets and services that have affected competitors.
The research firm highlighted EPAM’s digital product and platform transformation and cloud services as areas experiencing increased demand, while noting the company benefits from limited exposure to U.S. government contracts and traditional business process outsourcing.
Mizuho has modestly raised its 2025 and 2026 revenue and EPS estimates for EPAM, expressing confidence that the company is well-positioned to accelerate organic revenue growth over the medium term.
In other recent news, EPAM Systems reported strong financial results for the second quarter of 2025, exceeding market expectations. The company posted earnings per share (EPS) of $2.77, surpassing the analyst forecast of $2.61. Revenue also outperformed projections, reaching $1.353 billion compared to the expected $1.33 billion. In addition to these robust earnings, Jefferies has raised its price target for EPAM Systems to $230, up from $225, while maintaining a Buy rating. The decision was based on increasing demand for EPAM’s services, despite broader economic challenges. Jefferies highlighted the company’s growing demand for technical expertise as a key factor in this positive outlook. These developments reflect ongoing confidence in EPAM Systems’ market position and potential for growth.
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