EPAM

Conference Call Announcement: EPAM Systems, Inc. will host a conference call on May 8, 2025, at 8:00 a.m. ET to discuss its first quarter financial results, with a live webcast available on their website.

Company Overview: EPAM Systems has established itself as a leader in digital transformation and engineering services since 1993, leveraging AI technologies to enhance client innovation and competitive advantage across various industries.

Company Overview and Stock Performance: EPAM Systems, Inc., a mid-cap technology company specializing in digital platform engineering, has seen its stock decline significantly, dropping 39.2% from its 52-week high and underperforming compared to the Dow Jones Industrial Average over various time frames.

Financial Results and Analyst Outlook: Despite reporting better-than-expected financials with revenue growth driven by acquisitions, concerns about declining organic revenues and increased goodwill have unsettled investors, leading to a cautious consensus rating of "Moderate Buy" among analysts.

ETF Analysis: The Xtrackers Russell US Multifactor ETF (DEUS) has an implied analyst target price of $61.36 per unit, indicating a potential upside of 15.78% from its current trading price of $52.99.

Stock Performance Insights: Notable underlying holdings such as PVH Corp, NVIDIA Corp, and Epam Systems, Inc. show significant upside potential according to analysts, with expected increases of 79.80%, 50.54%, and 49.22% respectively from their recent prices.

Technology Sector Performance: The Technology & Communications sector is the worst performer, down 0.8%, with Microchip Technology Inc and Epam Systems, Inc. experiencing significant year-to-date losses of 8.95% and 26.23%, respectively.

Industrial Sector Performance: The Industrial sector follows closely with a 0.7% loss; Gartner Inc and Huntington Ingalls Industries, Inc. show mixed year-to-date performances, with Gartner down 12.57% and Huntington up 6.96%.

General Motors' Supply Chain Strategy: GM is adjusting its supply chain to manage tariff impacts but is hesitant to invest significantly without clearer policy direction, according to CEO Mary Barra.

Impact of Uncertainty on Construction and Sales: Builders FirstSource noted that uncertainty in policy is causing a slowdown in single-family home construction, while Rockwell Automation reported sales delays due to ongoing trade and policy uncertainties.

EPAM's Recognition: EPAM Systems has been recognized as one of the top IT vendors in the Netherlands for the third consecutive year in the 2025 Dutch IT Sourcing Study by Whitelane Research, achieving high scores in service quality and customer satisfaction.

Commitment to Excellence: The company emphasizes its dedication to delivering transformative solutions and building trust with clients, aiming to be a preferred partner for organizations navigating digital transformation challenges.

Full Truck Alliance (YMM): Barclays analyst Jiong Shao maintains a Hold rating on Full Truck Alliance with a price target of $13.00, while the consensus among analysts is a Strong Buy with an average price target of $15.69.

Epam Systems (EPAM): Analyst Ramsey El Assal from Barclays keeps a Buy rating on Epam Systems with a price target of $270.00, and the overall analyst consensus is also a Strong Buy with an average price target of $266.09, indicating significant upside potential.

Company Overview and Performance: EPAM Systems, Inc., valued at $11.8 billion, specializes in digital platform engineering and software development but has significantly underperformed the market, with a 30.3% decline over the past year compared to a 17% gain in the S&P 500 Index.

Analyst Ratings and Future Outlook: Despite recent declines, EPAM maintains a "Moderate Buy" consensus among analysts, with price targets suggesting potential upside of 24% to 42.5%, following a strong earnings report that exceeded expectations.

Launch of Empathy Lab: EPAM Systems has launched Empathy Lab in Europe, an AI-native agency designed to assist modern Chief Marketing Officers (CMOs) with complex challenges in technology and customer experience, leveraging 30 years of expertise in digital transformation.

Focus on Customer Engagement: The agency aims to enhance customer loyalty and engagement through personalized experiences across various channels, utilizing advanced technologies like AI to create human-centered interactions that drive measurable growth for brands.

Analyst Ratings Overview: Recent ratings for EPAM Systems show a mix of bullish and bearish sentiments, with an average 12-month price target of $274.00, reflecting a 5.38% increase from the previous target of $260.00.

Financial Performance Insights: EPAM Sys has demonstrated revenue growth of 6.92% but lags behind industry peers in overall growth rates; however, it excels in net margin (8.27%) and maintains a balanced debt-to-equity ratio of 0.04.

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Analyst Ratings on Epam Systems: J.P. Morgan analyst Puneet Jain maintains a Buy rating on Epam Systems with a price target of $274, while Barclays also issued a Buy rating; however, TD Cowen has a Hold rating on the stock.

Insider Selling and Market Sentiment: Corporate insider sentiment for Epam Systems is negative, with an increase in share sales by insiders, including a significant sale by SVP Viktar Dvorkin, indicating potential concerns about the company's future performance.

CCC Intelligent Solutions Holdings: Barclays analyst Saket Kalia maintains a Hold rating with a price target of $13.00, while the analyst consensus is a Moderate Buy with a target of $13.67.

Shift4 Payments and Epam Systems: Shift4 Payments receives a Buy rating from John Coffey with a target of $117.00, and Epam Systems also gets a Buy rating from Ramsey El Assal with a target of $290.00, both showing potential upside according to analyst consensus ratings.

Stock Performance Overview: Ten large-cap stocks experienced significant declines last week, with Akamai Technologies and Axon Enterprise leading the losses at 23.01% and 22.79%, respectively, due to weak guidance and analyst downgrades.

Market Concerns: Broader market weakness and economic concerns contributed to the poor performance of these stocks, including notable drops in Twilio, EPAM Systems, and Robinhood Markets.

ETF Analyst Target Prices: The WisdomTree U.S. LargeCap Fund ETF (EPS) has an implied analyst target price of $71.75, indicating a potential upside of 12.29% from its current trading price of $63.90.

Notable Holdings with Upside Potential: Key underlying holdings such as HEICO Corp, Epam Systems, and Twilio Inc show significant upside potential, with expected increases of 19.01%, 18.80%, and 17.70% respectively based on their average analyst target prices.

Analyst Rating Update: Guggenheim analyst Jonathan Lee has reduced the price target for Epam Systems (EPAM) from $290 to $285 while maintaining a Buy rating, citing positive organic revenue growth despite a lower adjusted EPS forecast for 2025 due to softer operating margins.

Earnings Forecasts: Epam Systems anticipates Q1 EPS between $2.22 and $2.32, which is below the consensus estimate of $2.59, and expects FY25 EPS in the range of $10.45 to $10.75, also falling short of the consensus of $11.32.

Market Performance: Major U.S. stock indices, including the S&P 500 and Nasdaq 100, experienced declines, reaching one-week lows due to concerns over consumer demand following Walmart's weak profit forecast, alongside pressure from bank stocks.

Economic Indicators: Weekly jobless claims rose unexpectedly, indicating a weaker labor market, while T-note yields fell in response to dovish signals from the Federal Reserve and Treasury Secretary regarding future monetary policy adjustments.

Stock Performance: EPAM Systems Inc. shares fell 12.80% to $225.07, marking the fourth consecutive day of losses amid a generally poor trading session for the stock market.

Market Trends: The S&P 500 Index decreased by 0.43%, while the Dow Jones Industrial Average dropped by 1.01%.

Trinet Group Inc. Options Activity: Trinet Group Inc. (TNET) has seen a trading volume of 1,898 options contracts today, with significant activity in the $75 strike call option expiring on February 21, 2025.

Alphabet Inc. Options Activity: Alphabet Inc. (GOOG) recorded an options trading volume of 89,055 contracts, particularly notable for the $192.50 strike call option expiring on February 21, 2025.

Market Overview: Major U.S. stock indices are down, with the S&P 500 falling -0.85% and Walmart's weak profit forecast raising concerns about consumer demand, contributing to market pressure.

Interest Rates and Economic Indicators: T-note yields are declining due to rising jobless claims and comments from Treasury Secretary Bessent, while European bond yields show mixed results amid expectations of potential ECB rate cuts.