Epam Systems initiated with a Neutral at Redburn Atlantic

Redburn Atlantic initiated coverage of Epam Systems with a Neutral rating and $195 price target. The analyst launched coverage on the digital transformation subsector of IT services with a slightly negative outlook compared with the market. However, there are many company-specific factors that contribute to the varying organic revenue growth profiles and valuations that have been accentuated by the recent “supercycle,” the analyst tells investors in a research note. The firm says that for Epam’s organic growth to return to pre-supercycle levels in the mid-20% range, a substantial recovery in demand and pricing is required.