William Blair analyst Maggie Nolan has maintained their bullish stance on DAVA stock, giving a Buy rating today.
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Maggie Nolan’s rating is based on a combination of factors that highlight both challenges and opportunities for Endava. Despite the company’s fiscal fourth-quarter results aligning with consensus estimates, the initial guidance for fiscal 2026 was weaker than expected, which has put pressure on the stock. However, management’s optimism for the latter half of 2026, with anticipated growth in North America and improvements in healthcare and BCM segments, provides a positive outlook.
Moreover, Endava’s AI-native delivery model, Endava Flow, is demonstrating significant productivity gains, which could enhance operational efficiency and drive future growth. Additionally, the company boasts its highest-ever quarterly order book, with a substantial portion of the backlog already contracted for fiscal 2026. These factors contribute to a favorable long-term growth perspective, justifying the Buy rating despite current revenue growth challenges.
In another report released today, Guggenheim also maintained a Buy rating on the stock with a $18.00 price target.