Jefferies raises EPAM Systems stock price target to $230 on improving demand

Published 08/08/2025, 11:26
Jefferies raises EPAM Systems stock price target to $230 on improving demand

Investing.com - Jefferies raised its price target on EPAM Systems (NYSE:EPAM) to $230.00 from $225.00 on Friday, maintaining a Buy rating on the IT services company. According to InvestingPro data, EPAM currently trades at $157.74 and appears undervalued based on its Fair Value analysis.

The research firm cited improving demand for EPAM’s services despite ongoing macroeconomic uncertainty, attributing this to several company-specific factors including growing demand for technical expertise. The company maintains strong financials with a current ratio of 3.06x and minimal debt-to-equity of just 0.04.

Jefferies noted that AI-native projects are "finally beginning to scale" as viable use cases emerge in the market, creating new opportunities for the company.

The firm expressed optimism that EPAM’s current mid-single digit run-rate organic growth could trend higher if early signs of clients increasing their spending materialize.

Jefferies also raised its 2025 adjusted earnings per share estimate for EPAM by $0.20 to $11.14, reflecting its confidence in the company’s growth trajectory. This optimism is shared by other analysts, with 4 analysts recently revising their earnings estimates upward according to InvestingPro data.

In other recent news, EPAM Systems reported strong financial results for the second quarter of 2025. The company exceeded earnings expectations with an earnings per share (EPS) of $2.77, compared to the forecasted $2.61. Revenue also surpassed projections, reaching $1.353 billion against an anticipated $1.33 billion. These results highlight the company’s robust performance in the quarter. Analyst firms have not provided any recent updates regarding upgrades or downgrades for EPAM Systems. There are no new reports of mergers or acquisitions involving the company at this time. Investors may find the earnings and revenue figures particularly noteworthy as they assess the company’s recent performance.

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