Guggenheim raises EPAM Systems stock price target on AI deals
Guggenheim upgraded its EPAM Systems (NYSE:EPAM) stock price target to $190 from $160 on Wednesday, while keeping a Buy rating. The investment firm highlighted the company's strong third-quarter 2026 results that surpassed its guidance for revenue, margin, and earnings per share. Currently trading at $165.70, EPAM's stock has risen about 55% over the past six months.
The firm noted three significant AI-driven multi-year deals closed during the quarter. EPAM forecasts a trough growth phase in the fourth quarter of 2026, with organic growth expected to rise in the first quarter of 2027 and continue through 2027. In addition, the company announced a $500 million accelerated share repurchase program, which represents approximately 7% of its market capitalization.
Analyst Jonathan Lee stated that the large-deal proof points in the quarter provided investors with the evidence needed to back his Buy rating. The buyback is part of a new long-term capital allocation framework that underscores management's confidence in the business outlook. The stock's risk-reward profile is viewed as positively skewed due to emerging signs of accelerated organic growth.
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