Deutsche Bank Reinstates Hold on Epam Systems with a Price Target of $171.

Deutsche Bank Reinstates Hold on Epam Systems with a Price Target of $171.

Deutsche Bank has recently reinstated a Hold rating on EPAM Systems (NYSE:EPAM) with a new price target of $171. This decision comes after the bank previously maintained a Buy rating on the company, highlighting its competitive positioning in higher-end software engineering services. Deutsche Bank's analysts have cited the company's strong financial health and growth potential as reasons for their initial optimism [2].

EPAM Systems reported impressive financial results for the first quarter of 2025, with earnings per share (EPS) of $2.41, surpassing the forecast of $2.29. The company also reported revenue of $1.3 billion, exceeding the projected $1.28 billion, marking an 11.7% year-over-year growth. These results have led to a revision of the company's full-year revenue guidance to a range of 11.5% to 14.5% [2].

Despite the positive financial performance, Deutsche Bank's analysts have noted that EPAM's stock is currently trading at a 10% discount to the equal-weight S&P 500 and a 27% discount to Accenture (NYSE:ACN). This discount suggests that the market may be undervaluing the company's growth prospects. However, the bank has expressed caution due to the current economic uncertainty and the potential impact of geopolitical risks on the company's earnings [2].

The reinstated Hold rating and the lowered price target reflect Deutsche Bank's assessment of the current market conditions and EPAM's position within the technology sector. The bank's analysts have highlighted the company's conservative guidance as potentially offering upside if economic stability continues. However, they have also noted that EPAM faces challenges in navigating the current economic headwinds and geopolitical uncertainties.

In other recent news, EPAM Systems launched DIAL 3.0, an open-source generative AI platform aimed at helping enterprises implement AI solutions. This strategic advancement underscores the company's commitment to innovation and growth in the technology sector [2].

References:

[1] https://www.investing.com/news/analyst-ratings/stifel-reiterates-buy-rating-on-epam-systems-stock-amid-growth-potential-93CH-4131924
[2] https://www.marketbeat.com/instant-alerts/deutsche-bank-aktiengesellschaft-db-to-release-quarterly-earnings-on-wednesday-2025-07-16/