UPDATE: VTB Capital Initiates EPAM Systems at Hold on Valuation

VTB Capital initiated coverage on EPAM Systems EPAM with a Hold rating and a $2 price target. VTB Capital noted, "EPAM, a leading CEE outsourcing company of complex software engineering solutions and product development, is strongly positioned to monetise the benign growth prospects of the Russian ITS export market and benefit from its dominant market position. However, we believe this has been correctly reflected by the current market price. Our 12-month Target Price for EPAM of USD 22 implies only 11% upside potential and so we are initiating with a Hold recommendation." EPAM Systems closed at $19.86 on Tuesday.