11:45 AM EDT, 05/09/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our price target by $85 to $221, 19x our '25 EPS view, near peers but well below EPAM's ( EPAM ) three-year average (~29x) and our previous multiple (25x) on shrinking near-term sales targets that question EPAM's ( EPAM ) growth trajectory. We lower our '24 EPS view by $0.08 to $10.15 and lower '25's by $0.63 to $11.62. EPAM ( EPAM ) posted Q1 sales of $1.17B (-3% Y/Y) and EPS of $2.46 (flat), near consensus, with a modestly lower full-year guide. Utilization improved to 76.8% (+250 bps Q/Q) alongside a shrinking labor force (-1%), with headcount growing in India. More client demand is shifting to EPAM's ( EPAM ) India delivery centers, constraining growth given the lower billing rates, and we think this pressure will worsen this year as peers continue expanding their India presence. We see pullbacks in discretionary spending hurting EPAM ( EPAM ) more than peers given its exposure to transformative projects. Still, we think today's ~25% sell-off is an overreaction, with support from EPAM's ( EPAM ) $2B net cash balance and historical design leadership.