Morgan Stanley Lowers PT on EPAM Systems, Inc. (EPAM) to $175, Maintains 'Equal Weight' Rating

With significant hedge fund interest, EPAM Systems, Inc. (NYSE:EPAM) secures a spot on our list of the 13 Best Virtual Reality Stocks to Buy Right Now.

On September 9, 2025, Morgan Stanley lowered its price target on EPAM Systems, Inc. (NYSE:EPAM) from $210 to $175, maintaining an ‘Equal Weight’ rating. The investment firm cited a cautious outlook for U.S. IT Services due to AI investments crowding out IT budgets, increased pricing pressure, and potential ROIC dilution from heavier capital allocation. Thus, sustained headwinds are projected that would impact market expansion and valuation growth across the sector. At the same time, muted short-term expectations are set for individual companies like EPAM.

EPAM Systems, Inc. (NYSE:EPAM), a global provider of digital platform engineering and software development services, specializes in cloud migration, data analytics and AI, cybersecurity, and customer experience design, alongside integrated engineering practices and smart automation solutions. It is one of the Best Virtual Reality Stocks To Buy.

While we acknowledge the potential of EPAM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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