Mizuho cuts Epam Systems target, sees buying opportunity on selloff

Mizuho analyst Sean Kennedy lowered the firm’s price target on Epam Systems to $258 from $345 and keeps a Buy rating on the shares. The company reported Q1 results and lowered its 2024 revenue guidance from up 2.5% year-over-year growth at the midpoint to down 1.4%, resulting in a 27% selloff, the analyst tells investors in a research note. The firm says that while the guidance cut is disappointing, the main cause was the still-weak IT services market and not a company-specific issue. Mizuho views Epam’s valuation as compelling and sees the recent selloff as an opportunity to buy the company.