
DAVA Stock Forecast & Price Target
DAVA Analyst Ratings
Bulls say
Endava has demonstrated a robust quarter-over-quarter revenue increase in North America, driven by a strategic client reclassification, which highlights the company's adaptability in capturing new market opportunities. The sequential growth in headcount and the emphasis on AI initiatives underscore management's commitment to investing in technology that aligns with industry trends, positioning Endava favorably for future growth. With strong fundamentals in digital engineering and transformation services, Endava is poised to benefit from an eventual recovery in demand, potentially leading to double-digit organic growth and a favorable risk/reward scenario in the medium term.
Bears say
Endava reported a decline in 1Q FY26 revenue to £178.2 million, reflecting an 8.6% year-over-year decrease, which was attributed to weaker client spending and a slowdown in the contract signing process. Management has lowered the FY26 revenue outlook to a range of £735 million to £752 million, indicating anticipated revenue growth decline of 4.5% to 2.5% year-over-year, driven by demand pressures and an unexpected client credit. Furthermore, the company has signaled increased expenses due to AI-related investments and a cautious outlook for the second quarter, contributing to concerns about potential further downside risk to future earnings estimates.
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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