Morgan Stanley Issues Pessimistic Forecast for EPAM Systems (NYSE:EPAM) Stock Price

Key Points

• Morgan Stanley cut its EPAM Systems price target from $112 to $100 and maintained an “equal weight” rating, implying 6.59% downside from the stock’s current price.
• Analyst sentiment is broadly neutral: EPAM has a consensus “Hold” rating and an average price target of $132.64, based on seven Buy, eight Hold, and one Sell rating.
• EPAM reported quarterly earnings of $2.86 per share, exceeding estimates of $2.75, while revenue rose 7.6% year over year to $1.40 billion.

EPAM Systems (NYSE:EPAM - Get Free Report) had its target price decreased by analysts at Morgan Stanley from $112.00 to $100.00 in a report issued on Tuesday,Benzinga reports. The firm presently has an "equal weight" rating on the information technology services provider's stock. Morgan Stanley's price target points to a potential downside of 6.59% from the stock's current price.

A number of other research analysts have also recently commented on EPAM. Wells Fargo & Company reduced their price target on shares of EPAM Systems from $151.00 to $125.00 and set an "overweight" rating on the stock in a research report on Friday, July 10th. Weiss Ratings lowered shares of EPAM Systems from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, May 7th. Wedbush began coverage on EPAM Systems in a research note on Monday, June 15th. They set a "neutral" rating and a $99.00 price objective on the stock. Citigroup lowered their target price on EPAM Systems from $112.00 to $100.00 and set a "neutral" rating for the company in a research note on Monday, July 27th. Finally, The Goldman Sachs Group lowered EPAM Systems from a "buy" rating to a "neutral" rating and reduced their price target for the stock from $215.00 to $110.00 in a research report on Friday, May 8th. Seven research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, EPAM Systems has a consensus rating of "Hold" and a consensus price target of $132.64.

EPAM Systems Stock Performance

EPAM Systems stock opened at $107.05 on Tuesday. The firm's 50 day simple moving average is $90.99 and its 200 day simple moving average is $126.38. The firm has a market capitalization of $5.59 billion, a PE ratio of 15.36, a price-to-earnings-growth ratio of 1.00 and a beta of 1.39. The company has a current ratio of 2.67, a quick ratio of 2.67 and a debt-to-equity ratio of 0.05. EPAM Systems has a 1-year low of $73.06 and a 1-year high of $222.53.

EPAM Systems (NYSE:EPAM - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The information technology services provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.75 by $0.11. EPAM Systems had a return on equity of 14.71% and a net margin of 6.96%.The firm had revenue of $1.40 billion for the quarter, compared to analysts' expectations of $1.39 billion. During the same quarter last year, the firm posted $2.41 EPS. The company's revenue was up 7.6% compared to the same quarter last year. As a group, analysts expect that EPAM Systems will post 10.4 earnings per share for the current fiscal year.

Institutional Investors Weigh In On EPAM Systems

Institutional investors and hedge funds have recently modified their holdings of the stock. Sunbelt Securities Inc. raised its stake in EPAM Systems by 4,233.3% in the fourth quarter. Sunbelt Securities Inc. now owns 130 shares of the information technology services provider's stock worth $27,000 after buying an additional 127 shares in the last quarter. Sound Income Strategies LLC boosted its position in shares of EPAM Systems by 279.5% during the fourth quarter. Sound Income Strategies LLC now owns 148 shares of the information technology services provider's stock valued at $31,000 after purchasing an additional 109 shares in the last quarter. CYBER HORNET ETFs LLC purchased a new stake in EPAM Systems in the second quarter worth $27,000. 1248 Management LLC bought a new position in EPAM Systems in the fourth quarter worth $32,000. Finally, Rothschild Investment LLC lifted its position in EPAM Systems by 51.4% during the fourth quarter. Rothschild Investment LLC now owns 159 shares of the information technology services provider's stock valued at $33,000 after buying an additional 54 shares during the period. 91.58% of the stock is owned by hedge funds and other institutional investors.

EPAM Systems Company Profile

EPAM Systems, Inc is a global provider of digital platform engineering and software development services. The company partners with clients across industries—such as financial services, healthcare, retail, and technology—to design, develop, and maintain complex software applications and digital experiences. EPAM's offerings include custom software development, application management, infrastructure management, quality assurance, and testing services, enabling organizations to accelerate digital transformation and enhance operational efficiency.

In addition to its core engineering capabilities, EPAM delivers a range of specialized services, including product design and consulting, data and analytics, cloud computing, DevOps, and cybersecurity.

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