Unveiling 5 Analyst Insights On Endava

Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on Endava DAVA in the last three months.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $81.2, with a high estimate of $90.00 and a low estimate of $77.00. Observing a 14.77% increase, the current average has risen from the previous average price target of $70.75.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of Endava by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Endava. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Endava compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Endava's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Endava's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Endava analyst ratings.

Unveiling the Story Behind Endava

Endava is a next-generation IT services company that primarily assists clients with their digital transformation efforts by creating customized software for them. The company was founded in 2006 in the U.K. and it continues to generate the majority of revenue in the U.K. and Europe. Endava's client base is concentrated in the payments and financial services, technology, media, and telecom industries.

Understanding the Numbers: Endava's Finances

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Endava's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -3.95%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Endava's net margin is impressive, surpassing industry averages. With a net margin of 6.56%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Endava's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.11%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Endava's ROA excels beyond industry benchmarks, reaching 1.58%. This signifies efficient management of assets and strong financial health.

Debt Management: Endava's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.12.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.