Beyond The Numbers: 4 Analysts Discuss Endava Stock

4 analysts have shared their evaluations of Endava DAVA during the recent three months, expressing a mix of bullish and bearish perspectives.

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 $33.5, along with a high estimate of $50.00 and a low estimate of $18.00. Observing a downward trend, the current average is 16.25% lower than the prior average price target of $40.00.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of Endava by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Endava. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Endava compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Endava's stock. This comparison reveals trends 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.

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Get to Know Endava Better

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's Economic Impact: An Analysis

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.

Revenue Growth: Over the 3M period, Endava showcased positive performance, achieving a revenue growth rate of 6.56% as of 31 December, 2024. This reflects a substantial increase 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 3.5%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Endava's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1.07%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Endava's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.7%, the company showcases efficient use of assets and strong financial health.

Debt Management: Endava's debt-to-equity ratio is below the industry average at 0.27, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

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.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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