Despite Sluggish Demand, EPAM Poised For Potential 20% Growth By FY24: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Mayank Tandon reiterated a Buy rating on EPAM Systems, Inc. (NYSE:EPAM) but lowered the price target to $275 from $325 due to sluggish demand. EPAM has slashed its Q2 and FY23 financial outlook, with clients becoming cautious about digital transformation spending. However, Tandon believes EPAM can return to 20%+ organic revenue growth by mid to late FY24 if economic conditions improve.
June 05, 2023 | 6:16 pm
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EPAM Systems' price target has been lowered to $275 from $325 due to sluggish demand, but the company has potential for 20%+ organic revenue growth by mid to late FY24 if economic conditions improve.
The lowered price target is due to sluggish demand and reduced financial outlook for Q2 and FY23. However, the analyst believes that if economic conditions improve, EPAM can return to 20%+ organic revenue growth by mid to late FY24. This suggests a neutral short-term impact on the stock price, as the potential for future growth is still present despite the current challenges.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100