EPAM Systems Stock Sees Significant Growth Potential Amid Upgrade to "Buy" Rating by TD Cowen

EPAM Systems' stock has been upgraded to "Buy" by TD Cowen, leading to a 2.3% rise in premarket trading. Analysts forecast an average price target of $213.75, suggesting a potential upside of 35.53%. GuruFocus GF Value estimates a potential 91.68% increase from the current stock price.

EPAM Systems (NYSE: EPAM) saw its stock surge by 4.8% in the morning session on July 2, 2025, following an upgrade by investment firm TD Cowen. The firm raised its rating on EPAM from Hold to Buy and increased its price target to $205 from $192. This upgrade reflects TD Cowen's view that EPAM's current share price does not adequately account for the company's recovering growth trajectory and the significant completion of its global delivery reorganization [1].

The analyst cited several factors supporting the upgrade, including EPAM's accelerating organic growth, a trough in profitability, and a discounted valuation. These factors create an attractive risk-reward scenario for investors. TD Cowen also highlighted EPAM's active capital allocation strategy and strong financial health, with a healthy current ratio of 3.17 and minimal debt-to-equity of just 0.04 [2].

EPAM's stock price initially jumped to $165.36, up 4.9% from the previous close, but then cooled down. The stock has been volatile, with 11 moves greater than 5% over the last year. The recent move is seen as meaningful but not fundamentally transformative by the market. EPAM is down 27.8% since the beginning of the year and currently trades 38.2% below its 52-week high of $267.63 from February 2025 [1].

Investors who bought $1,000 worth of EPAM's shares five years ago would now be looking at an investment worth $543.84. Analysts at TD Cowen and other firms like Mizuho and Jefferies have also raised their price targets for EPAM, reflecting the company's strong performance and demand for its technical expertise despite macroeconomic uncertainties [2].

References:
[1] https://finance.yahoo.com/news/why-epam-epam-stock-today-160102758.html
[2] https://ca.investing.com/news/analyst-ratings/td-cowen-upgrades-epam-systems-stock-rating-to-buy-on-recovery-trajectory-93CH-4164003