Jefferies Sees a Bottom for IT Spending—EPAM Systems Stock Could Get a Boost

Jefferies sees a slowdown successful business IT spending bottoming retired soon, which could assistance shares of EPAM Systems (EPAM).

Analysts astatine Jefferies lifted their standing connected EPAM, a supplier of package improvement and integer level engineering services, to bargain from hold, boosting its value target from $202 to $237. Its shares were precocious up much than 5%, to astir $210.

The analysts said business discretionary spending remains “at bay,” pinch only nan astir captious IT projects, aliases parts of a project, getting done. But “there is simply a earthy level to request for IT services,” they wrote, and said and they deliberation nan marketplace is adjacent those levels.

Along pinch a betterment successful customer demand, Jefferies sees EPAM benefiting from nan semipermanent advantages of request for artificial intelligence (AI) and cited “an charismatic valuation for a high-quality asset.”

EPAM Systems shares fell to their lowest level since nan outbreak of nan COVID-19 pandemic past month. While they've risen today, they’ve mislaid astir 30% of their worth this year. 

Wall Street has a statement stock value target of astir $223 connected EPAM shares, according to Visible Alpha.