
DAVA Stock Forecast & Price Target
DAVA Analyst Ratings
Bulls say
Endava's positive outlook is supported by a 5% quarter-over-quarter revenue increase in North America, attributed to a significant client reclassification, highlighting the company's adaptability to market changes. The steady 1.4% increase in headcount, alongside a 75 basis points rise in average billable headcount, indicates ongoing investment in AI initiatives, signaling the potential for future growth in technology-driven projects. Furthermore, the company's strong positioning in digital engineering and transformation services positions it well for double-digit organic growth in the long term, especially as demand across key industry verticals is expected to accelerate with increased AI adoption and improved economic conditions.
Bears say
Endava reported a first quarter revenue of £178.2 million, marking an 8.6% year-over-year decline and a 4.6% quarter-over-quarter decrease, indicating significant demand pressures ahead. The company has lowered its fiscal year 2026 revenue outlook to between £735 million and £752 million, reflecting a projected decline of 4.5% to 2.5% year-over-year due to unexpected client credits and a subdued pipeline. Furthermore, management's cautious stance on client spending and increased expenses associated with AI investments suggest potential downside risks to future estimates and valuation, leading to a challenging outlook for the company'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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