EPAM Systems Rises On Barclays Upgrade Citing ‘Thawing Of Investment Dollars’: Retail Sentiment Remains Subdued

Barclays sees EPAM well-positioned to capture demand as digital transformation projects accelerate and IT investments recover.

Shares of EPAM Systems Inc. closed 1.8% higher on Tuesday, recovering from three straight sessions of losses, after Barclays upgraded the technology services provider citing favorable growth prospects for fiscal 2025.

Barclays raised its rating to ‘Overweight’ from ‘Equal Weight’ and lifted the stock’s price target to $290 from $250. 

The brokerage noted that current macroeconomic challenges, which weighed on IT services this year, may ease in the coming months, creating an opportunity for EPAM to benefit from renewed spending.

According to Barclays' research note, lower interest rates and easing inflation are positive signals that could unlock investment budgets previously constrained by economic uncertainty. 

The note highlighted that EPAM has made the necessary investments to capitalize on this trend as clients resume long-term technology initiatives.

Barclays also pointed to the rising adoption of generative artificial intelligence projects, which are shifting from pilot programs to full-scale implementation. 

It added that demand for broader digital transformation services is also showing early signs of recovery, giving EPAM a strong position to win market share as enterprises ramp up IT spending.

Despite the bullish outlook from Barclays, retail investor sentiment on Stocktwits remained subdued. 

Activity around EPAM tickers stayed at ‘normal’ levels, with sentiment hovering in ‘neutral’ territory, suggesting caution among investors.

EPAM Systems, which specializes in software engineering and digital transformation services, has faced a challenging environment in 2024 amid slowing enterprise IT spending. 

Shares are down about 15% year-to-date, underperforming broader tech indices. 

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