EPAM Systems downgrade details -- to Equal Weight at Barclays; tgt lowered to $38...Barcalys is EPAM's biggest customer
EPAM Systems downgrade details -- to Equal Weight at Barclays; tgt lowered to $38
Barclays downgraded EPAM to Equal Weight from Overweight and lowered their tgt to $38 from $47. With the political crisis deepening in Ukraine, firm sees increased risk around EPAM's revenue growth outlook and labor supply, which firm believes may keep pressure on the stock's multiple in the near term. While firm believes that co's operations remain intact for now and that co's overall fundamentals were strong as of the recent quarter, firm also recognizes that some clients may become wary about operational work performed in such an unstable region (not only Ukraine, but also Russia and possibly Belarus).
Barclay is essentially saying that are getting wary of doing business with EPAM. Barclay is EPAM"s largest customer. if they pull their business from them it would be very detrimental to EPAM's revenue growth