Morgan Stanley Trims Price Target on EPAM Systems, Inc. (EPAM) to $160, Keeps Equal Weight Rating

EPAM Systems, Inc. (NYSE:EPAM) is among the 10 Best Magic Formula Stocks for 2026. Morgan Stanley on February 20 cut its price target on the stock to $160 from $175, while maintaining an Equal Weight rating.

Morgan Stanley Trims Price Target on EPAM Systems, Inc. (EPAM) to $160, Keeps Equal Weight Rating

The adjustment followed the company’s fourth-quarter earnings call a day earlier, during which it forecast Q1 2026 earnings in line with Wall Street’s estimates but appeared conservative to investors and analysts.

Shares slumped 16% in premarket trading, which Morgan Stanley attributed to the cautious outlook for 2026. The firm also described the budgetary commentary as ‘slightly muted’, in a research note to analysts.

EPAM Systems, Inc. (NYSE:EPAM) anticipates revenue in the range of $1.38 billion to $1.40 billion for the first quarter, adjusted profit expected between $2.70 and $2.78 per share.

On the same day, Goldman Sachs analyst James Schneider trimmed the price target on the stock to $235 from $250. However, the firm described the share price slump as an overreaction and reiterated a Buy rating on the stock.

EPAM Systems, Inc. (NYSE:EPAM) is a leading provider of digital and AI transformation services worldwide.

While we acknowledge the risk and potential of EPAM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EPAM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 Best Military Technology Stocks to Buy Right Now and 10 Best Meme Stocks to Buy Now.

Disclosure: None. Follow Insider Monkey on Google News.