A Closer Look at 4 Analyst Recommendations For Endava

Throughout the last three months, 4 analysts have evaluated Endava DAVA, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $79.25, along with a high estimate of $90.00 and a low estimate of $70.00. Marking an increase of 17.11%, the current average surpasses the previous average price target of $67.67.

Investigating Analyst Ratings: An Elaborate Study

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: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Endava compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Endava's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Capture valuable insights into Endava's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Endava analyst ratings.

About 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.

Key Indicators: Endava's Financial Health

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Challenges: Endava's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -3.95%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Endava's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 6.56%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Endava's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.11%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.58%, the company showcases effective utilization of assets.

Debt Management: Endava's debt-to-equity ratio is below the industry average at 0.12, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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