Endava price target raised to $20 from $18 at Needham

Needham raised the firm’s price target on Endava (DAVA) to $20 from $18 and keeps a Buy rating on the shares after the firm’s meeting with its management team to discuss the demand environment following Endava’s recent results. The management noted that the pace of pipeline conversion remains sluggish as clients delay new IT investments due to the uncertain economic climate, the analyst tells investors in a research note. Needham adds however that while the near-term spending environment remains cloudy, it also sees estimates as likely de-risked, with any stability/improvement in the demand climate potentially serving as a catalyst for upward estimate revisions.