EPAM Systems (EPAM) Stock: Why The Price Jumped Up Today

By Amit Chowdhry ● Mar 2, 2022
  • The EPAM Systems Inc (NYSE: EPAM) stock increased by over 16% today. This is why.

The EPAM Systems Inc (NYSE: EPAM) stock increased by over 16% today. This is a slight recovery as the company stock price fell by over 47% between February 25 and March 1.

But today investors appear to be responding positively to a bullish research report. Stifel analyst David Grossman assigned EPAM Systems a price target of $385 while maintaining a “Buy” rating on the shares.

“Yesterday BMO, EPAM suspended 2022 guidance due to escalation of the Ukrainian conflict: EPAM has operated in the region for decades and initiated 2022 guidance 2/17/22, which implies the disruption is more severe than anticipated and could endure longer. We are revising our estimates to reflect incremental risk, but note limited visibility and a wide range of potential EPS outcomes (2022 $8-$11/ $9-$13 2023),” wrote Grossman in a research note. “EPAM was down 46% yesterday and 70% from the outset of the conflict. While we acknowledge ongoing uncertainty/risk, EPAM is a bellwether at the high-end of the technology stack, the heart of digital transformation, and we have high confidence they can pivot and resume industry-leading growth once things stabilize (historically 25%+). EPAM is trading at 23.3x and 18.9x the “mid-point” of our discounted range of 2022/2023 EPS outcomes (approximately $9 and $11, respectively), which feels very compelling for those that can endure near-term volatility and uncertainty.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.