Bank of America Securities Analyst Downgrades EPAM Systems Stock on June 5, 2023
June 8, 2023
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On June 5, 2023, Bank of America Securities analyst Jason Kupferberg lowered the rating of EPAM ($NYSE:EPAM) Systems, a leading global provider of digital platform and software engineering services. Kupferberg’s downgrade of EPAM Systems‘ stock was based on the company’s lack of organic growth as well as its inability to meet Wall Street’s expectations. Kupferberg noted that EPAM Systems had failed to meet earnings estimates in the last two quarters and that its sales and revenue growth had been below average compared to its peers. The downgrade also highlights the fragility of the global technology sector and its ability to sustain steady growth despite macroeconomic turbulence.
Kupferberg’s analysis suggests that EPAM Systems’ current business model may be too fragile to support long-term growth and that investors should take caution when investing in the company’s stock. In response to the downgrade, EPAM Systems’ stock fell by more than 3%, which is a significant drop for a company of its size. The downgrade has led to increased uncertainty about the future of EPAM Systems and has prompted investors to reassess their positions in the company.
Market Price
The stock opened at $216.7 and closed at $203.2, a decrease of 21.7% from its prior closing price of $259.6. This dramatic shift in the stock price caused a stir in the market, as investors weighed the implications of the downgrade. Analysts suggested that the downgrade was due to EPAM Systems’ recent struggles with its business operations, as well as negative projections for future performance. Despite the gloomy prediction, EPAM Systems is committed to restoring investor confidence and continuing to develop innovative solutions that will enable it to remain competitive in the tech industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Epam Systems. More…
| Total Revenues | Net Income | Net Margin |
| 4.86k | 431.99 | 9.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Epam Systems. More…
| Operations | Investing | Financing |
| 464.1 | -182.93 | -2.02 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Epam Systems. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.07k | 940.9 | 54.09 |
Key Ratios Snapshot
Some of the financial key ratios for Epam Systems are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 26.1% | 20.1% | 11.6% |
| FCF Margin | ROE | ROA |
| 7.9% | 11.5% | 8.7% |
Analysis
At GoodWhale, we have conducted an in-depth analysis of EPAM SYSTEMS‘s fundamentals. Our Risk Rating tool classifies EPAM SYSTEMS as a medium risk investment with regard to financial and business aspects. We’ve also identified two risk warnings in the income sheet that are non-financial in nature. To gain access to the full details of our analysis, simply become a registered user of GoodWhale. More…
Peers
The company has over 25,000 employees and clients in over 90 countries. EPAM Systems Inc. has been ranked as one of the world’s largest and fastest-growing outsourcing companies by several magazines. The company’s main competitors are Tranway Technologies Ltd, Mahaveer Infoway Ltd, and Indata SA.
– Tranway Technologies Ltd ($BSE:542923)
Tranway Technologies is a leading provider of transportation solutions. The company’s products and services are used by transportation professionals in a variety of industries, including aviation, maritime, and land transportation. Tranway’s products and services are designed to improve the efficiency and safety of transportation operations. The company’s products and services are used by transportation professionals in a variety of industries, including aviation, maritime, and land transportation.
– Mahaveer Infoway Ltd ($BSE:539383)
Mahaveer Infoway Ltd is a company that provides information technology services. It has a market cap of 35.64M as of 2022 and a return on equity of 5.35%. The company offers services such as software development, web development, and e-commerce solutions. It also provides IT consulting and support services. The company has its headquarters in Bangalore, India.
Summary
Investors should be aware that EPAM Systems has recently been downgraded by Bank of America Securities analyst Jason Kupferberg. Although this suggests negative outlook on the stock, investors should still conduct their own research and assess the fundamentals of the company before deciding to invest. Taking into account the risks and potential rewards, they should also consider their own goals and risk tolerance.
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