Morgan Stanley Forecasts Strong Price Appreciation for EPAM Systems (NYSE:EPAM) Stock

Key Points

• Morgan Stanley raised its EPAM Systems price target from $97 to $140 but maintained an “equal weight” rating; the new target implied 4.85% upside from the prior close.
• Analyst sentiment is mixed: MarketBeat’s consensus rating is “Hold,” with an average price target of $125.40. Guggenheim’s $160 target is among the more bullish views.
• EPAM reported quarterly EPS of $3.38, beating the $3.16 consensus estimate, while revenue of $1.41 billion matched expectations and rose 4.6% year over year.

EPAM Systems (NYSE:EPAM - Get Free Report) had its price objective boosted by investment analysts at Morgan Stanley from $97.00 to $140.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage presently has an "equal weight" rating on the information technology services provider's stock. Morgan Stanley's price target points to a potential upside of 4.85% from the company's previous close.

A number of other research analysts have also commented on the company. TD Cowen decreased their price objective on EPAM Systems from $131.00 to $120.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Weiss Ratings upgraded EPAM Systems from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, October 23rd. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $85.00 price target on shares of EPAM Systems in a research note on Friday, July 10th. Guggenheim raised their price target on EPAM Systems from $140.00 to $160.00 and gave the company a "buy" rating in a report on Monday. Finally, Truist Financial lowered their price objective on EPAM Systems from $112.00 to $110.00 and set a "hold" rating for the company in a research report on Friday, August 7th. Six analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $125.40.

EPAM Systems Price Performance

Shares of EPAM Systems stock traded down $4.65 during trading on Wednesday, reaching $133.52. The company's stock had a trading volume of 1,546,640 shares, compared to its average volume of 1,455,914. The stock has a 50-day moving average price of $119.29 and a two-hundred day moving average price of $122.26. The stock has a market capitalization of $6.89 billion, a P/E ratio of 18.21, a price-to-earnings-growth ratio of 1.49 and a beta of 1.28. The company has a current ratio of 2.75, a quick ratio of 2.75 and a debt-to-equity ratio of 0.01. EPAM Systems has a one year low of $73.06 and a one year high of $222.53.

EPAM Systems (NYSE:EPAM - Get Free Report) last announced its earnings results on Thursday, August 6th. The information technology services provider reported $3.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.16 by $0.22. The company had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.41 billion. EPAM Systems had a net margin of 7.15% and a return on equity of 15.84%. EPAM Systems's quarterly revenue was up 4.6% on a year-over-year basis. During the same period in the prior year, the business earned $2.77 earnings per share. EPAM Systems has set its FY 2026 guidance at 13.080-13.240 EPS and its Q3 2026 guidance at 3.380-3.460 EPS. As a group, sell-side analysts anticipate that EPAM Systems will post 10.47 EPS for the current fiscal year.

Hedge Funds Weigh In On EPAM Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Financial Management Professionals Inc. grew its position in shares of EPAM Systems by 47.3% in the 3rd quarter. Financial Management Professionals Inc. now owns 268 shares of the information technology services provider's stock valued at $29,000 after acquiring an additional 86 shares during the period. Bradley Foster & Sargent Inc. CT raised its holdings in shares of EPAM Systems by 4.7% in the 1st quarter. Bradley Foster & Sargent Inc. CT now owns 2,812 shares of the information technology services provider's stock valued at $381,000 after purchasing an additional 126 shares during the period. Pinnacle Wealth Planning Services Inc. lifted its stake in EPAM Systems by 14.3% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 1,169 shares of the information technology services provider's stock valued at $127,000 after purchasing an additional 146 shares during the last quarter. University of Texas Texas AM Investment Management Co. lifted its stake in EPAM Systems by 236.2% in the 3rd quarter. University of Texas Texas AM Investment Management Co. now owns 232 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 163 shares during the last quarter. Finally, Nisa Investment Advisors LLC grew its holdings in EPAM Systems by 31.4% during the third quarter. Nisa Investment Advisors LLC now owns 708 shares of the information technology services provider's stock worth $77,000 after purchasing an additional 169 shares during the period. 91.58% of the stock is owned by institutional investors.

About EPAM Systems

EPAM Systems, Inc is a global digital engineering and technology services company that helps organizations design, develop and modernize software and digital platforms. Its services support digital transformation initiatives across industries, including financial services, healthcare, life sciences, retail, travel and consumer products.

The company provides software engineering, product development, consulting, cloud services, data and analytics, artificial intelligence, cybersecurity, quality assurance and platform engineering.

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