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Research Alert: CFRA Reiterates Hold Rating On Shares Of Epam Systems

05/10/2021 03:19

07:15 AM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $474 (up by $75), 50x our '22 EPS estimate of $9.47 (from $9.03), above consultancy peers -- shares command a premium due to its engineering heritage and industry-leading growth rates but remain near fair value, in our view. We lift our '21 EPS estimate to $7.72 from $7.39 to reflect the broad-based recovery in volumes and raised financial targets. EPAM prints Q1 EPS of $1.81 vs. $1.43, topping consensus by $0.12, helped by lower corporate spending. EPAM produced revenues of $781M (up 20% Y/Y), beating consensus of $765M, led by an uplift in demand for platform development and analytics in Life Sciences (up 32% Y/Y). Contract pricing and recent uptick in attrition were key themes from Q1 -- EPAM displayed more ambiguity into the timing of pricing increases to support more complex IT projects than in the past, but we think it will be able to pass along inflationary pressures (mostly around wages) to clients, given its distinct capabilities across digital platform and consulting services.