/EPAM%20Systems%20Inc%20logo%20on%20building-by%20Robson90%20via%20Shutterstock.jpg)
Valued at a market cap of $11.7 billion, EPAM Systems, Inc. (EPAM) provides digital platform engineering and software development services. Based in Newtown, Pennsylvania, the company serves various industries, including financial services, travel and consumer, software and hi-tech, information and media, life sciences, and healthcare.
Shares of this software engineering company have significantly underperformed the broader market over the past 52 weeks. EPAM has declined 20.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 25.1%. In 2024, shares of EPAM are down 32.3%, compared to SPX’s 18% gain on a YTD basis.
Zooming in further, EPAM’s underperformance is evident when compared to the Invesco S&P 500 Equal Weight Technology ETF’s (RSPT) 25.8% gain over the past 52 weeks and 13.5% returns on a YTD basis.
Shares of EPAM fell 8.2% following its Q2 earnings release on Aug. 8 despite its adjusted earnings of $2.45 per share beating Wall Street estimates of $2.26 per share. The company’s revenues of $1.15 also surpassed Street estimates of $1.14 billion. However, EPAM lowered its fiscal 2024 revenue outlook to $4.59 billion-$4.63 billion and revised its full-year earnings outlook to $10.20-$10.40 per share.
For the current fiscal year, ending in December, analysts expect EPAM’s EPS to decline 6.3% year over year to $8.07. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” ten “Holds,” and one “Moderate Sell.”
The configuration is more bullish than three months ago, with eight analysts suggesting a “Strong Buy.”
On Jul. 16, Jefferies upgraded the EPAM Systems rating to “Buy” and raised the price target to $237, which implies a potential upside of 17.8% from the current price levels.
The mean price target of $223.55 represents a premium of 11.1% to EPAM’s current levels. The Street-high price target of $275 implies a potential upside of 36.7% from the current price.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
