EPAM Systems (EPAM) PT Raised to $546 at Stifel Following Earnings

May 6, 2021 1:29 PM EDT
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Price: $508.46 +0.56%

Rating Summary:
    18 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 12 | Down: 7 | New: 31
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Stifel analyst David M. Grossman raised the price target on EPAM Systems (NYSE: EPAM) to $546.00 (from $445.00) while maintaining a Buy rating.

The analyst commented, "EPAM reported a strong beat and raise this morning; however, it is trading down 2% versus the S&P500 +50bp. Weakness reflects commentary about the inflection in demand driving labor costs higher industry-wide, which is manageable for EPAM, but more impactful for others like CTSH, who reported similar dynamics last night (down 7%). There are multiple factors at play; however, we view them as temporary and have high confidence that EPAM will continue to gain share while maintaining margins. The shift to cloud is entering a phase that favors those vendors that can execute technologically complex engagements at scale, which plays to EPAM's strengths--the company called out three large modernization projects ramping in 1H21 and guided to 10% 2Q21 sequential revenue growth, well above historical seasonality. EPAM is a best in class asset compounding at 20-25%; we would use any sustained weakness opportunistically and raise our target price to $546."

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