
EPAM Systems (EPAM) Stock Forecast & Price Target
EPAM Systems (EPAM) Analyst Ratings
Bulls say
EPAM Systems demonstrated a robust performance with a total revenue growth of 11.7% year-over-year, reaching $1.30 billion, which surpassed both estimates and consensus expectations. The company's headcount increased to 61,700, reflecting management's proactive hiring strategy to support an uptick in demand, alongside a notable rise in utilization to 77.5%. Additionally, strong growth in key sectors, particularly banking, insurance, and travel, coupled with a healthy geographic revenue spread across the Americas and EMEA, underscores a positive outlook for EPAM's operational and financial stability moving forward.
Bears say
EPAM Systems is facing significant challenges, including a gross margin of 28.7% that fell short of expectations due to increased compensation and M&A impacts, which overshadowed any pricing advantages. The company is also contending with a 90% revenue decline from its largest customer, alongside the pressures of geopolitical conflicts and a shift in technology spending from on-premise solutions to cloud-based services. Additional risks, including intensified competition, a downturn in IT spending, and potential geopolitical escalation, suggest that EPAM's growth may remain below historical levels, leading to potential valuation compression in the future.
This aggregate rating is based on analysts' research of EPAM Systems and is not a guaranteed prediction by Public.com or investment advice.
EPAM Systems (EPAM) Analyst Forecast & Price Prediction
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