Analyst James Faucette of Morgan Stanley maintained a Hold rating on Epam Systems (EPAM – Research Report), retaining the price target of $250.00.
James Faucette has given his Hold rating due to a combination of factors impacting EPAM Systems. The company’s recent bookings have not shown significant acceleration, which, along with tariff impacts, may lead management to slightly reduce their growth outlook for the year 2025. Although there is a positive outlook for the first quarter, the overall environment requires a cautious approach until the company reports its results.
Faucette notes that while demand for EPAM’s services remains stable, the potential reduction in spending following “Liberation Day” could influence management to adjust their growth guidance. The Financial Services sector, which forms a significant portion of EPAM’s revenue, continues to show strength, but challenges persist in the Travel & Consumer sector due to tariffs. Additionally, ongoing investments in AI and recent acquisitions are expected to maintain stable operating margins, supporting the Hold recommendation.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EPAM in relation to earlier this year.