EPAM Systems (NYSE:EPAM) Coverage Initiated by Analysts at Citigroup

Key Points

• Citigroup has initiated coverage on EPAM Systems with a "neutral" rating and a price target of $170, indicating an upside potential of 8.61% from its recent closing price.
• EPAM Systems' Board has authorized a $1.00 billion stock buyback plan, reflecting management's view that the stock is undervalued.
• The company reported a quarterly EPS of $2.77, exceeding expectations and representing a year-over-year revenue increase of 18.0% to $1.35 billion.

Equities research analysts at Citigroup started coverage on shares of EPAM Systems (NYSE:EPAM - Get Free Report) in a report released on Wednesday,Benzinga reports. The firm set a "neutral" rating and a $170.00 price target on the information technology services provider's stock. Citigroup's price target suggests a potential upside of 8.61% from the company's previous close.

EPAM has been the subject of several other reports. Wells Fargo & Company initiated coverage on shares of EPAM Systems in a research note on Tuesday. They set an "overweight" rating and a $185.00 price objective for the company. Cowen upgraded shares of EPAM Systems from a "hold" rating to a "buy" rating in a research report on Monday, August 18th. Deutsche Bank Aktiengesellschaft assumed coverage on EPAM Systems in a research note on Thursday, July 17th. They issued a "hold" rating and a $171.00 price target for the company. Weiss Ratings restated a "sell (d+)" rating on shares of EPAM Systems in a research note on Wednesday, October 8th. Finally, JPMorgan Chase & Co. cut their target price on shares of EPAM Systems from $205.00 to $201.00 and set an "overweight" rating for the company in a research note on Wednesday, August 20th. Fourteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $219.41.

EPAM Systems Stock Performance

Shares of NYSE:EPAM traded up $1.45 on Wednesday, hitting $156.53. 709,817 shares of the company were exchanged, compared to its average volume of 750,865. EPAM Systems has a 1-year low of $138.15 and a 1-year high of $269.00. The stock's 50 day moving average price is $158.44 and its 200 day moving average price is $163.98. The company has a current ratio of 3.17, a quick ratio of 3.17 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $8.72 billion, a P/E ratio of 22.33, a price-to-earnings-growth ratio of 2.10 and a beta of 1.65.

EPAM Systems (NYSE:EPAM - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The information technology services provider reported $2.77 EPS for the quarter, topping the consensus estimate of $2.61 by $0.16. EPAM Systems had a net margin of 7.91% and a return on equity of 14.00%. The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same period in the previous year, the firm posted $2.45 earnings per share. The business's revenue for the quarter was up 18.0% compared to the same quarter last year. EPAM Systems has set its FY 2025 guidance at 10.960-11.120 EPS. Q3 2025 guidance at 2.980-3.060 EPS. Sell-side analysts predict that EPAM Systems will post 8.9 EPS for the current year.

EPAM Systems announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, October 21st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the information technology services provider to buy up to 12.4% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Insider Transactions at EPAM Systems

In related news, SVP Sergey Yezhkov sold 1,511 shares of the company's stock in a transaction dated Tuesday, October 21st. The shares were sold at an average price of $150.27, for a total transaction of $227,057.97. Following the completion of the sale, the senior vice president owned 146 shares of the company's stock, valued at approximately $21,939.42. This represents a 91.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 4.30% of the company's stock.

Institutional Trading of EPAM Systems

Large investors have recently bought and sold shares of the business. Mirae Asset Global Investments Co. Ltd. grew its stake in EPAM Systems by 18.1% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 7,248 shares of the information technology services provider's stock valued at $1,224,000 after acquiring an additional 1,112 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its stake in shares of EPAM Systems by 85.5% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 7,107 shares of the information technology services provider's stock valued at $1,299,000 after buying an additional 3,275 shares during the period. Pacific Capital Partners Ltd grew its stake in shares of EPAM Systems by 12.5% in the 2nd quarter. Pacific Capital Partners Ltd now owns 22,500 shares of the information technology services provider's stock valued at $3,978,000 after buying an additional 2,500 shares during the period. Liontrust Investment Partners LLP purchased a new stake in shares of EPAM Systems in the 1st quarter valued at approximately $6,486,000. Finally, Robeco Institutional Asset Management B.V. grew its stake in shares of EPAM Systems by 6.6% in the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 91,941 shares of the information technology services provider's stock valued at $16,257,000 after buying an additional 5,689 shares during the period. Hedge funds and other institutional investors own 91.58% of the company's stock.

About EPAM Systems

EPAM Systems, Inc provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; infrastructure management services, such as software development, testing, performance tuning, deployment, maintenance, and support services.

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