UPDATE: Stifel Nicolaus Raises PT on EPAM Systems Following Modest Revenue/EPS Beat

In a report published Monday, Stifel Nicolaus analyst David Grossman reiterated a Buy rating on EPAM Systems EPAM, and raised the price target from $29.50 to $38.00.

In the report, Stifel Nicolaus noted, “EPAM reported a modest revenue and EPS beat, reporting results at the high end of their guided range. 3Q guidance was also modestly higher, although the annual guide remained unchanged. Guidance implies a deceleration of 4Q revenue growth, which reflects an unusually difficult compare in the prior year. As we have said in the past, our investment thesis is predicated on three fundamental drivers. First, the company's relative positioning and ability to offer higher end technology services from an offshore location, a relatively underpenetrated market. Second, the company's differentiated geographic presence (CIS region), which better positions them to gain share in the relatively underpenetrated European market. And third, the prospect for multiple expansion as earnings more closely parallel revenue growth.”

EPAM Systems closed on Friday at $31.52.