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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