Guggenheim Analyst Reiterates Buy Rating on Epam Systems with $215 Price Target

Guggenheim analyst Jonathan Lee reiterated a Buy rating on Epam Systems with a $215 price target. Lee covers the Technology sector and has an average return of -24.8% and a 13.64% success rate on recommended stocks. Epam Systems has a one-year high of $269 and a one-year low of $138.15. The company has a negative corporate insider sentiment with an increase in insiders selling their shares.

Epam Systems (NYSE: EPAM) has seen a surge in its stock price following a strong second quarter (Q2) earnings report and positive analyst ratings. The technology company reported robust earnings for the quarter ending March 31, 2025, with revenue reaching $1.353 billion and earnings per share (EPS) of $2.77, both exceeding analysts' expectations [2]. The stock responded positively, climbing 9.05% in pre-market trading to $165 per share.

Guggenheim analyst Jonathan Lee reiterated a Buy rating on Epam Systems with a $215 price target. Lee, who covers the Technology sector and has an average return of -24.8% and a 13.64% success rate on recommended stocks, noted the company's strong performance and potential for growth [1]. Additionally, Mizuho Securities analyst Sean Kennedy also reiterated a Buy rating with a price target of $224.00 [1]. Despite the positive analyst ratings, the company has a one-year high of $269 and a one-year low of $138.15, indicating a significant range in stock price.

Epam Systems' corporate insider sentiment remains negative, with an increase in insiders selling their shares. Most recently, SVP Boris Shnayder sold 10,500 shares for a total of $1,931,685.00 in May 2025 [1]. This negative sentiment could potentially impact the stock price in the short term.

Looking ahead, Epam Systems projects full-year revenue growth between 13-15%, with Q3 revenue expected to range from $1.365 billion to $1.380 billion. The company remains focused on improving gross margins and profitability, leveraging its AI capabilities and cloud partnerships. With a healthy gross profit margin of 30.25% and return on equity of 12%, EPAM demonstrates solid operational efficiency. The company's strong balance sheet, with more cash than debt, positions it well for continued growth in the AI and cloud markets.

Epam Systems' strong performance and positive analyst ratings have contributed to the stock's recent surge. However, the negative corporate insider sentiment and potential macroeconomic pressures may pose risks to the company's growth. Investors should closely monitor the company's progress and the broader market conditions to make informed investment decisions.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/EPAM/pressreleases/33996135/mizuho-securities-sticks-to-their-buy-rating-for-epam-systems-epam/
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-epam-systems-beats-q2-2025-forecasts-stock-surges-93CH-4177763