EPAM Systems: Out Of Its Depth (Archive)
EPAM is really struggling and out of its depth in today’s IT services environment.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- In my last article on EPAM, I correctly noted that the growth engine is slowing but incorrectly believed it was all 'priced in'. The stock is down almost 27% since.
- EPAM had a bad Q1 FY23 quarter and an even worse outlook.
- EPAM is out of its depth and losing share.
- Management is implicitly guiding for further margin contraction.
- I downgrade the stock to a 'sell' as I wait for the QoQ growth declines and margins to stabilize before a re-entry.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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