Bryan Bergin, an analyst from TD Cowen, maintained the Hold rating on Endava. The associated price target is $12.00.
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Bryan Bergin has given his Hold rating due to a combination of factors impacting Endava’s current market position. The company is undergoing significant changes to its go-to-market and delivery strategies to align with the evolving GenAI landscape and a volatile services spending environment. However, these adjustments come after a series of downside surprises over the past two years, which have eroded market confidence and pressured the stock’s performance.
Despite meeting expectations for the fourth quarter, Endava’s guidance for the first quarter and fiscal year 2026 fell short, leading to a reduction in revenue and earnings estimates. This has resulted in a lowered price target and the expectation that the stock will remain range-bound until consistent performance is demonstrated. The ongoing structural changes, including leadership restructuring and new client engagement strategies, are necessary but may weigh on short-term performance amid a challenging demand environment.
In another report released on August 20, J.P. Morgan also maintained a Hold rating on the stock with a $17.00 price target.