Epam Systems upgraded to Outperform at Scotiabank after ‘strong’ Q4

Scotiabank upgraded Epam Systems (EPAM) to Outperform from Sector Perform with a price target of $350, up from $265. Epam reported a strong beat in Q4, with adjusted EPS significantly above the firm’s and Street estimates, driven by the ongoing cost optimization program undertaken by the company to rightsize operations, the analyst tells investors. The company also indicated a revenue “growth-at-all-costs approach” for FY24, says the analyst, who expects to see higher upside from Epam than for DX peer Globant (GLOB) given the stock’s underperformance in FY23 that was driven by geopolitical and macroeconomic pressures.