
DAVA Stock Forecast & Price Target
DAVA Analyst Ratings
Bulls say
Endava's stock outlook is bolstered by a 5% quarter-over-quarter revenue increase in North America, propelled by a significant client reclassification from the UK. The company continues to invest in artificial intelligence initiatives, reflected in a sequential 1.4% increase in headcount and a strategic focus on enhancing its workforce's AI capabilities. With strong demand anticipated across key industry verticals and an emerging trend toward AI adoption within the Global 2000, Endava is positioned for potential double-digit organic growth, reinforced by new client partnerships exemplified by a recent $100 million deal with a payments client.
Bears say
Endava's financial performance for the first quarter of FY26 reflects a concerning trend, with a revenue decline of 8.6% year-over-year, driven by unexpected client credit issues and a weak pipeline for new contracts. The company has notably reduced its FY26 revenue guidance to a range of £735 million to £752 million, indicating an increase in expenses mainly attributed to investments in AI and persistent demand softness. Furthermore, both gross and operating margins fell short of expectations due to rising costs associated with headcount growth, indicating potential challenges for maintaining profitability amid increasing competition and economic pressures.
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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