CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our target from $231 to $184, 14x our 2026 EPS view, below EPAM's three-year average (19x) on AI competition risk. We raise our 2026 EPS view by $0.31 to $13.13 and 2027's by $0.23 to $14.53. Profitability continues to improve, supported by operational discipline and improved pricing in certain cases, which helps provide support to our view that EPAM is favorably positioned for more AI-focused projects. To this point, EPAM's AI revenues continue to grow solidly, up 19% Q/Q to $125M in Q1 for the fifth-straight double-digit sequential increase. Despite more bearish fears that the company's revenue deceleration (with its 2026 organic CC guide coming down to ~5.25% from ~6% prior), we see clear negative impacts from macro factors (i.e., the war in Iran) that should prove temporary, allowing for multiple expansion once these factors fade and AI deal momentum becomes more clear. Still, our lower target reflects heightened risks of perceived AI competition as impressive new AI models continue to roll out.