EPAM
A Technology Play
Brought some EPAM Today at $114.89, without further ado let me tell you what I Like.
EPAM is guiding for solid growth this year with the mid point EPS being at $12.75, I believe EPAM deserves at 12x multiple. I also believe they will exceed those estimates as my guess is earnings will be in the low to mid 13's when all said and done this year. Based on their Analyst Day where I came away very impressed they talked about accelerating revenue growth over the next 3 years, and improving margins I personally think they could earn $15.00-16.00 in FY 27 and possibly $18-20 in FY 28. At a 12x multiple if you believe my belief of FY 27, I expect FV in the $180-190 range over the next 6-12 months, and right now we are getting the stock at multi year lows with growing earnings per share. Hence the stock is trading at historically low valuation for itself, with earnings and revs that are not only growing but are planning to accelerate. I suggest anyone interested look at the 8k on 3/12/26 that presentation is worth looking at in my opinion, it is really why I have gotten excited about this one. They also have a active buyback and down here that will mean possible a significant reduction in share with an active buyback that they have going forward. They also have an extremely healthy balance sheet with almost $24 in cash, and virtually no substantial debt to speak of.
So to recap Here is why I like EPAM, I see and accelerating revenue and EPS growth story over the next 3 years, I see a stock at multi year lows, at well below it's norm valuations multiples, with an extremely healthy balance sheet, and a solid buyback that is likely to buyback a significant amount of shares at current levels which will be very accretive going forward. Time will tell. But I think EPAM is very attractive here. All is just my opinion, and I could always be wrong though.
