The Analyst Landscape: 11 Takes On Endava

Providing a diverse range of perspectives from bullish to bearish, 11 analysts have published ratings on Endava DAVA in the last three months.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Endava, presenting an average target of $55.27, a high estimate of $80.00, and a low estimate of $33.00. This current average has decreased by 25.31% from the previous average price target of $74.00.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Endava among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Endava. This information provides a snapshot of how analysts perceive 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: Delving into movements, analysts provide estimates for the future value of Endava's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Endava's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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Delving into Endava's Background

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.

Endava: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Negative Revenue Trend: Examining Endava's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -10.57% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Endava's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 4.55%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.37%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Endava's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.05%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.1, Endava adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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