Needham & Company analyst Mayank Tandon reiterated a Buy rating and raised its price target on EPAM Systems (NYSE: EPAM) to $75.00 (from $71.00) following strong Q1 results, saying the company is in the 'sweet spot."

Tandon commented, "EPAM delivered strong 1Q results, beating comfortably on all fronts despite currency-related headwinds. Management provided 2Q guidance that was above expectations, but left FY15 guidance unchanged. With its focus on emerging technologies, we believe EPAM is positioned in the sweet spot of the "digitization" trend and the company should be able to continue to outpace the IT services market growth. We are tweaking our FY15 and FY16 estimates slightly higher but see plenty of room for upside as EPAM captures a larger share of the IT budget dollars at current clients and adds new logos. We continue to like the risk-reward at 19x (ex-cash) our FY16 EPS estimate of $3.18 for a LT 20-25% organic revenue grower with stable operating margins. We reiterate our BUY rating and raise our target to $75."

The firm is tweaking FY15 and FY16 estimates slightly higher but see room for plenty of upside over the seasonally stronger quarters as Global 2000 companies continue to increase their spend on emerging technologies.

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Shares of EPAM Systems closed at $65.25 yesterday.