TD Cowen upgrades EPAM Systems stock rating to Buy on recovery trajectory

Published 18/08/2025, 11:20
TD Cowen upgrades EPAM Systems stock rating to Buy on recovery trajectory

Investing.com - TD Cowen upgraded EPAM Systems (NYSE:EPAM) from Hold to Buy and raised its price target to $205.00 from $192.00. According to InvestingPro data, the company maintains strong financial health with a ’GOOD’ overall score, while trading significantly below its Fair Value.

The upgrade reflects TD Cowen’s view that EPAM’s current share price fails to account for the company’s recovering growth trajectory and the significant completion of its global delivery reorganization. The company’s solid fundamentals include a healthy current ratio of 3.17 and minimal debt-to-equity of just 0.04.

The firm noted that despite poor sentiment in the services sector, EPAM presents an attractive risk-reward ratio of 2:1 based on several key factors.

TD Cowen cited EPAM’s accelerating organic growth and what it considers a trough in profitability as supporting factors for the upgrade.

The firm also highlighted EPAM’s active capital allocation strategy and discounted valuation as additional reasons for the more positive outlook on the company.

In other recent news, EPAM Systems reported strong second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $2.77 compared to the forecasted $2.61. The company’s revenue also exceeded projections, reaching $1.353 billion against the anticipated $1.33 billion. Following these results, EPAM Systems adjusted its 2025 organic constant currency guidance, raising the low end to a range of +3% to +5% from the previous +2% to +5%. In response to these developments, Mizuho increased its price target for EPAM Systems to $225, while maintaining an Outperform rating. Similarly, Jefferies raised its price target to $230, citing improving demand for EPAM’s services and maintaining a Buy rating. Both firms highlighted the company’s strong performance and demand for its technical expertise despite macroeconomic uncertainties. These updates reflect recent developments concerning EPAM Systems’ financial performance and market outlook.

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