William Blair analyst Maggie Nolan has maintained their neutral stance on DAVA stock, giving a Hold rating yesterday.
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Maggie Nolan has given his Hold rating due to a combination of factors, including Endava’s modest top-line outperformance alongside pressured profitability. While quarterly revenue exceeded guidance and sequential growth resumed as large accounts stabilized, overall sales are still declining year-over-year and macro as well as FX headwinds persist, limiting near-term visibility.
At the same time, adjusted profit before tax margins have compressed meaningfully as management prioritizes sizeable AI and next-generation talent investments, which are expected to continue weighing on earnings. Early traction for Dava.Flow, expanding AI partnerships with major hyperscalers and platforms, and improving trends in the payments segment underscore attractive long-term opportunities, but the current balance of growth, margin pressure, and only slightly revised 2026 outlook supports a neutral, wait-and-see stance.
In another report released yesterday, TipRanks – OpenAI also reiterated a Hold rating on the stock with a $5.50 price target.