EPAM Systems (EPAM) Raised to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of EPAM Systems (NYSE:EPAM) from a hold rating to a buy rating in a report issued on Tuesday morning. The firm currently has $138.00 target price on the information technology services provider’s stock.

According to Zacks, “EPAM Systems is benefiting from growth across geographies and all industry verticals. Digital transformation, focus on customer engagement and product development are key growth drivers. EPAM has been steadily gaining traction in its IT services business. Acquisitions have been a key driving factor which has enabled it entering new markets, diversify and broaden product portfolio. EPAM’s healthy operating cash flow generation capability has helped it invest in growth initiatives. Shares have outperformed the industry in the past year. Nonetheless, as majority of EPAM’s delivery centers are located in Central and Eastern Europe, the company’s prospects are currently prone to a massive geopolitical risk due to the ongoing conflict between Russia and Ukraine.”

Several other research analysts have also issued reports on the stock. Citigroup increased their target price on shares of EPAM Systems from $142.00 to $153.00 and gave the stock a buy rating in a research note on Friday, October 5th. JPMorgan Chase & Co. increased their target price on shares of EPAM Systems from $152.00 to $157.00 and gave the stock an overweight rating in a research note on Friday, November 2nd. KeyCorp dropped their price objective on shares of EPAM Systems from $146.00 to $144.00 and set an overweight rating on the stock in a research note on Friday, November 2nd. Jefferies Financial Group assumed coverage on shares of EPAM Systems in a research note on Tuesday, November 20th. They issued a hold rating and a $134.00 price objective on the stock. Finally, Cantor Fitzgerald raised their price objective on shares of EPAM Systems from $139.00 to $146.00 and gave the company an overweight rating in a research note on Friday, November 2nd. Three investment analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company’s stock. EPAM Systems has an average rating of Buy and an average price target of $142.13.

NYSE EPAM traded up $0.99 on Tuesday, hitting $130.52. The company’s stock had a trading volume of 8,275 shares, compared to its average volume of 319,495. The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.11 and a current ratio of 5.11. EPAM Systems has a 1-year low of $102.03 and a 1-year high of $144.19. The stock has a market cap of $6.94 billion, a P/E ratio of 45.84, a price-to-earnings-growth ratio of 1.57 and a beta of 1.33.

EPAM Systems (NYSE:EPAM) last posted its quarterly earnings data on Thursday, November 1st. The information technology services provider reported $1.17 EPS for the quarter, beating the Zacks’ consensus estimate of $0.84 by $0.33. EPAM Systems had a net margin of 8.60% and a return on equity of 19.19%. The company had revenue of $468.20 million for the quarter, compared to analyst estimates of $466.97 million. During the same period in the prior year, the firm posted $0.92 EPS. The company’s quarterly revenue was up 24.0% on a year-over-year basis. Analysts predict that EPAM Systems will post 3.42 earnings per share for the current fiscal year.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Morgan Stanley boosted its position in EPAM Systems by 7.2% during the third quarter. Morgan Stanley now owns 5,793,689 shares of the information technology services provider’s stock worth $797,790,000 after purchasing an additional 388,438 shares during the period. Vanguard Group Inc. boosted its position in EPAM Systems by 2.7% during the third quarter. Vanguard Group Inc. now owns 4,447,536 shares of the information technology services provider’s stock worth $612,425,000 after purchasing an additional 117,376 shares during the period. Vanguard Group Inc boosted its position in EPAM Systems by 2.7% during the third quarter. Vanguard Group Inc now owns 4,447,536 shares of the information technology services provider’s stock worth $612,425,000 after purchasing an additional 117,376 shares during the period. BlackRock Inc. boosted its position in EPAM Systems by 0.3% during the third quarter. BlackRock Inc. now owns 2,201,852 shares of the information technology services provider’s stock worth $303,195,000 after purchasing an additional 7,591 shares during the period. Finally, Capital World Investors boosted its position in EPAM Systems by 78.8% during the third quarter. Capital World Investors now owns 2,070,917 shares of the information technology services provider’s stock worth $285,165,000 after purchasing an additional 912,555 shares during the period. Institutional investors and hedge funds own 92.54% of the company’s stock.

About EPAM Systems

EPAM Systems, Inc provides software product development and digital platform engineering services primarily in North America, Europe, Asia, and Australia. It offers software product development services, including product research, customer experience design, prototyping, program management, component design and integration, lifecycle software testing, product deployment, end-user customization, performance tuning, product support and maintenance, managed services, and porting and cross-platform migration.

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