
EPAM Systems (EPAM) Stock Forecast & Price Target
EPAM Systems (EPAM) Analyst Ratings
Bulls say
EPAM Systems demonstrated robust growth with a 6.9% increase in revenue quarter-over-quarter (Q/Q), supported largely by mergers and acquisitions (M&A), which contributed significantly to headcount expansion. The firm's strategic hiring, particularly in India, alongside increased organic recruitment, indicates a stabilization in demand and a renewed focus on growth initiatives from clients. Additionally, the positive projections for fiscal year 2024, with expected revenues between $4.685 billion and $4.695 billion, reflect a favorable upward revision and improved operating margin expectations, positioning EPAM advantageously in the IT services sector.
Bears say
The financial outlook for EPAM Systems reveals that the fourth-quarter revenue is projected to be between $1.205 billion and $1.215 billion, indicating just a 4.6% year-over-year growth at the midpoint while showing a decline of approximately 1.4% on an organic constant currency basis, reflective of broader market challenges. Additionally, the company's struggles in the travel and consumer sectors, with a reported 0.5% decline attributed to weaknesses in consumer products and retail, highlight a concerning trend in client demand. Looking ahead, potential prolonged economic downturns are anticipated to further hamper growth, driving operating margins towards 14.5-15.5% and expected earnings per share below consensus estimates, which could compress the company's valuation significantly in the coming fiscal years.
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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