NEWTOWN, Pa. – EPAM Systems, Inc. (NYSE: EPAM), acknowledged for its digital transformation services, announced today the acquisition of Odysseus Data Services, Inc., a company specializing in health data analytics. The move aims to enhance EPAM's capacity in the life sciences sector by integrating advanced data analytics and artificial intelligence (AI).
Odysseus, based in Cambridge, Massachusetts, is known for its healthcare data insights and evidence generation, employing data science and analytics, software engineering, and data management. The company is recognized for its standardized approach to healthcare data analytics, which is crucial for understanding healthcare interventions in various areas, including drug treatment and safety, epidemiological research, and cost reduction.
Greg Killian, Senior Vice President of Life Sciences at EPAM, expressed enthusiasm for the acquisition, highlighting the synergies between the two companies. He emphasized that the combined strengths of EPAM and Odysseus position them to lead innovation in life sciences research, clinical studies, and post-market surveillance, leveraging AI.
Gregory Klebanov, CEO of Odysseus, also welcomed the merger, noting the comprehensive solutions it will enable for the life sciences value chain, given EPAM's expertise in AI, machine learning, and cloud infrastructure.
EPAM Systems, established in 1993, has a global presence, delivering digital engineering and AI-enabled transformation services. The company has been added to the S&P 500 and Forbes Global 2000, also earning recognition as a Best Workplace by Glassdoor in 2023 and 2024.
This acquisition is based on the anticipation that the integration of EPAM's and Odysseus's capabilities will drive innovation and improve outcomes in the life sciences domain. However, it should be noted that the forward-looking statements made in the press release are subject to various risks and uncertainties and are based on currently available information. EPAM does not undertake any obligation to update these statements in light of new information or future events. The details of the acquisition are grounded in a press release statement from EPAM Systems, Inc.
In other recent news, EPAM Systems has been the subject of considerable analyst attention. Piper Sandler maintained an Overweight rating on the company's stock, despite a revised price target of $230. This decision resulted from extensive dialogue with investors, industry analysis, and direct conversations with EPAM's CEO and CFO. The company's financial targets for fiscal year 2024 have been recalibrated to better align with current market conditions, a move deemed sufficient by Piper Sandler's analysts.
EPAM Systems has also been the focus of several other analyst notes and revised revenue forecasts. Wolfe Research downgraded EPAM Systems from Outperform to Peer Perform due to macroeconomic challenges and operational shifts towards India. Redburn-Atlantic initiated coverage on EPAM Systems with a Neutral rating, citing significant operational changes due to the ongoing conflict in Ukraine, which has impacted the company's revenues.
Furthermore, EPAM Systems has faced a series of price target cuts from Mizuho, Needham, and Jefferies, following a reduction in its revenue forecast for the year. Mizuho revised the price target to $258 from $345 while maintaining a Buy rating. Needham, while maintaining a Buy rating, reduced the stock price target to $210 from $350. Jefferies cut the price target to $202 from $283, keeping the stock's rating at Hold. These recent developments reflect a cautious stance on EPAM Systems' near-term prospects.
InvestingPro Insights
As EPAM Systems, Inc. (NYSE: EPAM) forges ahead with strategic acquisitions to bolster its life sciences and AI capabilities, the company's financial health and market performance provide additional insights into its potential for growth and stability. With a market capitalization of $10.49 billion and a robust P/E ratio of 24.19, which adjusts to a lower 20.83 based on the last twelve months as of Q1 2024, EPAM demonstrates a solid valuation in the technology services market.
InvestingPro Tips highlight that EPAM holds more cash than debt on its balance sheet, indicating a strong financial position that may support further strategic investments and growth initiatives. Additionally, the company's liquid assets exceed its short-term obligations, offering flexibility and resilience in managing its financial commitments. These factors are particularly relevant as EPAM integrates Odysseus Data Services, Inc. and expands its data analytics and AI offerings in the competitive life sciences sector.
However, it's important to note that 15 analysts have revised their earnings downwards for the upcoming period, suggesting potential challenges ahead. Despite this, analysts predict the company will remain profitable this year, as it has been over the last twelve months. Investors may also find reassurance in the fact that EPAM's stock is currently trading near its 52-week low, which could represent a buying opportunity for those who believe in the company's long-term prospects.
For those seeking a deeper dive into EPAM's financials and future outlook, InvestingPro offers additional insights with a total of 9 InvestingPro Tips available. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable information to inform their investment decisions.
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