Update shared on 28 Nov 2025
Fair value Increased 0.28%EPAM Systems Price Target Sees Slight Increase Amid Mixed Analyst Outlook
Analysts have modestly raised their price target for EPAM Systems from $207.29 to $207.88. They cite sector-wide structural challenges, but also recognize potential for near-term performance improvements.
Analyst Commentary
As EPAM Systems attracts new coverage from industry analysts, divergent opinions have surfaced on the company's outlook and trajectory.
Bullish Takeaways
- Bullish analysts believe EPAM Systems has the potential to deliver upside to near-term performance estimates, supported by strong execution in key segments.
- There is optimism that ongoing sector transitions, particularly those driven by AI, could ultimately favor firms like EPAM that demonstrate adaptability and technical expertise.
- The company's valuation remains compelling, with some analysts expecting outperformance relative to peers during the current transition phase in IT services.
- EPAM's inclusion in broader IT sector coverage suggests recognition of their relevance and growth prospects, especially within high-demand digital transformation initiatives.
Bearish Takeaways
- Bearish analysts point to low visibility into the timing and pace of EPAM's recovery, creating uncertainty around forward growth projections.
- Structural challenges in the sector, particularly those related to the transition driven by AI adoption, are seen as headwinds to sustainable growth.
- Cautious sentiment persists in the market, with concerns that current macroeconomic conditions may limit near-term execution and expansion opportunities for EPAM.
What's in the News
- EPAM Systems announced the launch of AI/Run Transform Playbook, a next-generation consulting service designed to accelerate enterprise AI adoption and enable AI-native innovation at scale (Product-Related Announcements).
- The company has completed the repurchase of 2,674,000 shares, totaling $499.78 million as part of its ongoing buyback program. This represents 4.73% of shares outstanding (Buyback Tranche Update).
- EPAM raised its full-year 2025 earnings guidance and now expects revenues of $5.43 to $5.45 billion with a year-over-year growth rate of 15% at the midpoint. This surpasses previous estimates (Corporate Guidance - Raised).
- The company expanded its collaboration with Oracle to offer enhanced cloud and AI services to enterprises. This highlights its strong expertise with over 1,100 global Oracle certifications (Client Announcements).
- EPAM unified its engineering, consulting, and AI-native services under the EPAM NEORIS brand in Ibero-America. The company is entering new markets and expanding digital transformation offerings in Spanish- and Portuguese-speaking countries (Client Announcements).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $207.29 to $207.88.
- Discount Rate has increased marginally from 8.95% to 8.97%.
- Revenue Growth projection remains virtually unchanged, moving from 7.11% to 7.11%.
- Net Profit Margin shows a minor improvement, rising from 8.81% to 8.81%.
- Future P/E ratio has declined modestly from 23.84x to 23.44x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.