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On Friday, TD Cowen analyst Bryan Bergin updated the price target for EPAM Systems (NYSE:EPAM), raising it to $198.00 from the previous $180.00. With the stock currently trading at $177.51, analyst targets across Wall Street range from $167 to $263. Despite the increase, the firm maintained a Hold rating on the stock. Bergin’s assessment followed EPAM’s first-quarter performance, which he described as solid compared to the company’s plans. According to InvestingPro data, six analysts have recently revised their earnings expectations upward for the upcoming period.
EPAM Systems’ recent financial results have indicated a positive trend, with a strong first quarter that aligned with the company’s expectations. The company’s financial health score on InvestingPro is rated as "GREAT," supported by a robust current ratio of 3.06 and more cash than debt on its balance sheet. The second-quarter outlook is also promising, suggesting a continuation of organic growth recovery. Bergin pointed out that this trend is particularly encouraging given the extremely challenging backdrop for Services, with the stock showing significant momentum by gaining over 12% in the past week.
The analyst further noted that EPAM is holding its second-half view largely unchanged, which he considers a prudent approach amidst macroeconomic volatility. This strategy is aimed at managing Wall Street expectations effectively. Bergin mentioned that although there are structural questions remaining, EPAM’s situation appears to have notably improved.
Bergin’s commentary included a perspective on the broader context, "Building Momentum Encouraging; EPAM posted a solid 1Q vs. plan & 2Q outlook is encouraging as it would mark a continuation of organic growth recovery. Holding its 2H view largely unchanged is appropriately prudent considering macro volatility and the need to keep Street expectations well managed. Structural questions persist, but its setup seems notably improved in an extremely challenging Services backdrop. PT $198."
Investors and market watchers are keeping a close eye on EPAM Systems as it navigates the current economic environment, maintaining growth and adapting to ongoing challenges in the market. The updated price target by TD Cowen reflects a recognition of the company’s resilience and potential for continued progress in the upcoming quarters. For deeper insights into EPAM’s valuation and growth prospects, InvestingPro subscribers can access comprehensive financial health metrics, management’s share buyback activities, and exclusive ProTips in the detailed Pro Research Report, one of 1,400+ available for top US stocks.
In other recent news, EPAM Systems reported impressive financial results for the first quarter of 2025, surpassing analyst expectations. The company achieved earnings per share (EPS) of $2.41, exceeding the forecasted $2.29, and reported revenue of $1.3 billion, which was above the anticipated $1.28 billion. This strong performance marks a 5.2% positive earnings surprise and reflects an 11.7% year-over-year revenue growth. EPAM Systems has also raised its full-year revenue guidance to a range of 11.5% to 14.5%, with expectations for organic constant currency revenue growth between 2% and 5%.
In terms of strategic movements, the company has been focusing on AI-related services, bolstered by partnerships with major technology firms like Google (NASDAQ:GOOGL) Cloud and AWS. Additionally, EPAM Systems announced a leadership transition, with Balaj Feyros set to take over as CEO on September 1, 2025. Despite facing challenges such as margin pressures and macroeconomic uncertainties, the company remains optimistic about the second half of the year. Analysts from firms like TD Cowen and Barclays (LON:BARC) have acknowledged the company’s robust performance and strategic initiatives, highlighting the positive impact of AI on its growth trajectory.
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