Morgan Stanley Lowers PT on EPAM Systems, Inc. (EPAM) to $175, Maintains ‘Equal Weight’ Rating

With significant hedge fund interest, EPAM Systems, Inc. (NYSE:EPAM) secures a spot on our list of the 13 Best Virtual Reality Stocks to Buy Right Now.

On September 9, 2025, Morgan Stanley lowered its price target on EPAM Systems, Inc. (NYSE:EPAM) from $210 to $175, maintaining an ‘Equal Weight’ rating. The investment firm cited a cautious outlook for U.S. IT Services due to AI investments crowding out IT budgets, increased pricing pressure, and potential ROIC dilution from heavier capital allocation. Thus, sustained headwinds are projected that would impact market expansion and valuation growth across the sector. At the same time, muted short-term expectations are set for individual companies like EPAM.

EPAM Systems, Inc. (NYSE:EPAM), a global provider of digital platform engineering and software development services, specializes in cloud migration, data analytics and AI, cybersecurity, and customer experience design, alongside integrated engineering practices and smart automation solutions. It is one of the Best Virtual Reality Stocks To Buy.

While we acknowledge the potential of EPAM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EPAM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 Best Coal Stocks to Buy According to Hedge Funds and 11 Best Gold Royalty and Small-Cap Gold Stocks to Invest in Now.

Disclosure: None.