Morgan Stanley Sees EPAM Best Positioned To Tap Digital Transformation Spend

Morgan Stanley analyst reiterated Overweight on EPAM Systems, Inc EPAM and $480 price target.
Management’s progress on its relocation initiatives underpins the company’s target of at least +20% Y/Y organic growth in a normalized environment, he noted.
All of which were supported by solid demand, healthy pricing, and an ability to hire and train talent while navigating geopolitical uncertainty.
Also Read: EPAM Clocks 36% Revenue Growth In Q2; Beats Consensus Handsomely
His multiple is broadly in-line with that of EPAM’s closest digital pure-play IT Services peers, which he saw as warranted given signs of resiliency in demand for EPAM’s services and delivery footprint.
The analyst remained constructive on EPAM’s execution abilities around recruiting and delivery and its ability to deliver compounding growth in the future.
He believes that EPAM is among the best-positioned IT Services companies to benefit from digital transformation spending given its 100% digital exposure, agile development-focused nearshore workforce, and disciplined acquisition-focused capital allocation strategy.
Price Action: EPAM shares traded higher by 2.01% at $444.36 on Friday.

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