Cracking The Code: Understanding Analyst Reviews For Endava

During the last three months, 6 analysts shared their evaluations of Endava DAVA, revealing diverse outlooks from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Endava, presenting an average target of $41.17, a high estimate of $55.00, and a low estimate of $27.00. A 11.46% drop is evident in the current average compared to the previous average price target of $46.50.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Endava. The following summary 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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey 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.

For valuable insights into Endava's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

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Discovering Endava: A Closer Look

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: Delving into Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Endava's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.44% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -0.95%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Endava's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.29%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Endava's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.21%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.32.

Analyst Ratings: Simplified

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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