
DAVA Stock Forecast & Price Target
DAVA Analyst Ratings
Bulls say
Endava is facing a short-term headwind with clients harvesting more of the AI productivity benefits, resulting in lower margins and revenue. However, the company's strategic response, including a focus on outcome-based work and AI-driven engineering services, positions them well for long-term success and potential re-rating of the franchise. The company's current valuation of around 3x revised FY27E adj. EPS presents an attractive investment opportunity, but the lack of visible timelines for revenue and profitability stabilization warrants a neutral rating at this time.
Bears say
Endava is facing a challenging business environment with declining revenues across all verticals and geographies, as well as a decrease in headcount. The company's recent quarterly results have been disappointing, with revenue and earnings missing expectations and AI-transition investments compressing margins. Furthermore, the company's high exposure to the financial services sector and its global footprint make it vulnerable to potential macroeconomic headwinds and currency fluctuations. Lastly, Endava faces increased competition for talent, which could hamper its growth prospects. These factors contribute to a negative outlook for Endava's stock.
This aggregate rating is based on analysts' research of Endava plc - ADR and is not a guaranteed prediction by Public.com or investment advice.
DAVA Analyst Forecast & Price Prediction
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