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EPAM systems (New York Stock Exchange:EPAM) rose ~6% Friday afternoon after Piper Sandler upgraded tech stocks on improving fundamentals.
“We were bullish on EPAM before it was released and feel increasingly comfortable improving the company’s fundamentals as we look ahead. in the next 1-2 years,” the rating agency said in a research note.
The agency upgraded the stock to Overweight from Neutral and raised the price target to $265.00 from $243.00. The stock is currently trading at $244.63.
Piper Sandler believes that stabilizing sequential growth rates will lead to an inflection in revenue growth, while a reduction in operating costs should offset pressure on margins.
However, the agency acknowledges that its update could be a little early as the technology demand environment remains under pressure.
Piper Sandler’s EPAM rating aligns with sell-side analysts’ average rating of Buy, with a price target of $266.97.
Analysts at Search Alpha and the Quant Rating system give the stock a Hold rating.
