What Happened?
Shares of digital engineering services company EPAM Systems (NYSE: EPAM) jumped 2.8% in the afternoon session after Wells Fargo boosted its price target on the stock to $247 from $185, while maintaining its positive "Overweight" rating.
The analyst action signaled increased confidence in the company's direction. This followed EPAM's announcement that it planned to host an Investor Day in March 2026, with a key focus on artificial intelligence. The event was set to feature executives presenting the company's strategy for growth, particularly in the AI sector. Reinforcing its focus on this area, EPAM also released a report highlighting how businesses could unlock value with AI, positioning itself as a leader in the field. The combination of a strong analyst endorsement and a clear strategic focus on the high-growth area of AI appeared to resonate well with investors.
After the initial pop the shares cooled down to $219.71, up 3.6% from previous close.
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What Is The Market Telling Us
EPAM’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 8% on the news that the company announced a new stock repurchase program of up to $1 billion.
The company's Board of Directors authorized the program, which will have a term of 24 months. Stock buybacks are often viewed positively by investors because they reduce the number of shares outstanding, which can increase earnings per share. This move signaled management's confidence in the company's financial health and future prospects. The company’s CFO, Jason Peterson, added that they “remain confident in the underlying strength of our business reflected by three quarters of improving year-over-year organic constant currency revenue growth.” The repurchases may occur through open market or private transactions.
EPAM is up 9.6% since the beginning of the year, but at $219.71 per share, it is still trading 17.9% below its 52-week high of $267.63 from February 2025. Investors who bought $1,000 worth of EPAM’s shares 5 years ago would now be looking at an investment worth $644.97.
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