Stifel reiterates Buy rating on EPAM Systems stock amid growth potential

Investing.com - Stifel maintained its Buy rating on EPAM Systems (NYSE:EPAM) stock on Friday, highlighting the company’s competitive positioning in higher-end software engineering services. According to InvestingPro data, EPAM maintains a GOOD financial health score, with analysts setting a consensus price target of $250, suggesting potential upside from current levels.

The research firm noted that EPAM’s focus on advanced software engineering makes it more defensible against competition and less vulnerable to potential disruption from artificial intelligence.

Stifel pointed out that EPAM has experienced a period of depressed growth primarily due to company-specific challenges, particularly the geographic diversification necessitated by Russia’s invasion of Ukraine.

The firm expressed confidence that once current headwinds subside, EPAM has the potential to achieve at least low to mid-teens earnings per share growth.

Despite its currently depressed earnings outlook, Stifel observed that EPAM stock is trading at a 10% discount to the equal-weight S&P 500 and a 27% discount to Accenture (NYSE:ACN).

In other recent news, EPAM Systems reported impressive financial results for the first quarter of 2025, with earnings per share (EPS) of $2.41, surpassing the forecast of $2.29. The company also reported revenue of $1.3 billion, exceeding the projected $1.28 billion, marking an 11.7% year-over-year growth. Following this performance, EPAM raised its full-year revenue guidance to a range of 11.5% to 14.5%. Mizuho (NYSE:MFG) Securities responded by increasing its price target for EPAM to $224, highlighting the company’s strong implementation of new technologies such as GenAI. Stifel maintained its buy rating on EPAM, noting the company’s conservative guidance as potentially offering upside if economic stability continues. Meanwhile, TD Cowen raised its price target to $198, maintaining a Hold rating, acknowledging the company’s solid first-quarter performance and promising second-quarter outlook. Additionally, EPAM Systems launched DIAL 3.0, an open-source generative AI platform aimed at helping enterprises implement AI solutions. These recent developments underscore EPAM’s continued growth and strategic advancements in the technology sector.

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