William Blair analyst Maggie Nolan has maintained their neutral stance on DAVA stock, giving a Hold rating on May 18.
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Maggie Nolan has given his Hold rating due to a combination of factors, primarily the company’s weaker-than-expected quarterly performance and tempered outlook. Endava missed consensus on revenue, margins, and EPS, while management’s guidance for the upcoming quarter also fell short, reflecting slower conversion of large deals and persistent macroeconomic challenges that are already pressuring the stock.
At the same time, Nolan recognizes that Endava is investing in future growth areas such as AI, with AI-related revenue growing rapidly and now representing a larger share of total sales. However, these positives are being offset by declining demand in key verticals, margin compression from reskilling and go-to-market spending, and sector-specific softness in regions like the U.K. and North America, leading her to maintain a neutral, Hold stance rather than move to a more decisive rating.
In another report released on May 18, Morgan Stanley also maintained a Hold rating on the stock with a $3.84 price target.