Endava's (DAVA) "Hold" Rating Reaffirmed at TD Cowen

Key Points

• TD Cowen reaffirmed its “Hold” rating on Endava and set a $3.50 price target, implying roughly 64% upside from the stock’s $2.13 price.
• Analyst sentiment remains weak overall: Endava has one Buy, five Holds and three Sells, with a consensus rating of “Reduce” and an average price target of $5.36. William Blair downgraded the shares to Underperform, while Deutsche Bank cut its target to $2.
• Endava faces heightened uncertainty following its CFO’s leave during an accounting investigation, the appointment of an interim CFO, and investigations by multiple law firms into potential securities-law violations.

Endava (NYSE:DAVA - Get Free Report)'s stock had its "hold" rating reissued by TD Cowen in a research note issued on Tuesday, Benzinga reports. They presently have a $3.50 price objective on the stock. TD Cowen's target price points to a potential upside of 63.93% from the stock's current price.

Several other brokerages have also recently issued reports on DAVA. William Blair cut Endava from a "market perform" rating to an "underperform" rating in a research report on Tuesday. Zacks Research upgraded Endava from a "strong sell" rating to a "hold" rating in a research note on Monday, July 20th. Deutsche Bank Aktiengesellschaft lowered their target price on Endava from $3.00 to $2.00 and set a "hold" rating on the stock in a research note on Tuesday. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Endava in a report on Tuesday, September 8th. Finally, Guggenheim lowered shares of Endava from a "buy" rating to a "neutral" rating in a research report on Wednesday, May 27th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Endava currently has an average rating of "Reduce" and a consensus price target of $5.36.

Endava Stock Performance

Shares of DAVA traded down $0.66 during mid-day trading on Tuesday, hitting $2.13. 3,586,650 shares of the company's stock were exchanged, compared to its average volume of 364,528. Endava has a fifty-two week low of $2.07 and a fifty-two week high of $9.88. The firm has a market capitalization of $120.01 million, a P/E ratio of -0.20 and a beta of 1.03. The business's 50 day moving average is $2.98 and its two-hundred day moving average is $3.54. The company has a current ratio of 2.07, a quick ratio of 2.07 and a debt-to-equity ratio of 1.13.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Barometer Capital Management Inc. increased its holdings in shares of Endava by 32.5% in the 1st quarter. Barometer Capital Management Inc. now owns 106,300 shares of the company's stock valued at $470,000 after purchasing an additional 26,080 shares in the last quarter. SmartHarvest Portfolios LLC purchased a new stake in shares of Endava during the 1st quarter worth approximately $84,000. Alpine Global Management LLC purchased a new stake in shares of Endava during the 4th quarter worth approximately $87,000. CDAM UK Ltd grew its holdings in shares of Endava by 28.2% in the 4th quarter. CDAM UK Ltd now owns 2,979,658 shares of the company's stock worth $18,831,000 after acquiring an additional 655,078 shares during the period. Finally, Savant Capital LLC acquired a new stake in shares of Endava in the 4th quarter worth approximately $76,000. Hedge funds and other institutional investors own 62.23% of the company's stock.

More Endava News

Here are the key news stories impacting Endava this week:

• Positive Sentiment: Endava appointed Conor McShane of AlixPartners as interim CFO. His financial and restructuring experience could help provide additional oversight and support the accounting review, although the appointment also underscores the seriousness of the situation. Endava Appoints Conor McShane as Interim Chief Financial Officer
• Neutral Sentiment: Deutsche Bank reduced its price target to $2 from $3 while maintaining a Hold rating, indicating lower expected value but not a complete loss of confidence in the company. Deutsche Bank Cuts Price Target on Endava to $2 From $3, Keeps Hold Rating
• Negative Sentiment: The CFO’s leave during an accounting investigation is the primary catalyst for the decline. Investors face uncertainty over whether financial statements, internal controls or previously issued guidance will need revision. Endava ADRs Slide After CFO Placed on Leave During Accounting Investigation
• Negative Sentiment: William Blair downgraded Endava to Underperform from Market Perform, adding to concerns about the company’s outlook and near-term execution. William Blair Downgrades Endava to Underperform
• Negative Sentiment: Multiple law firms, including Block & Leviton and Glancy Prongay, announced investigations into potential securities-law violations. These announcements could increase litigation, compliance and reputational risks, though they do not establish wrongdoing. DAVA Securities Fraud Investigation by Block and Leviton

About Endava

Endava plc is a technology services company that helps organizations design, build and operate digital products and technology platforms. Its services include software engineering, cloud modernization, data and analytics, artificial intelligence, customer experience, cybersecurity and technology consulting.

The company works with clients across industries such as payments, banking, insurance, telecommunications, media, retail, mobility, healthcare and technology. Endava supports projects ranging from digital transformation and application development to platform modernization and ongoing technology operations.

Founded in 2000 and headquartered in London, Endava serves clients across Europe, North America, Latin America and the Asia-Pacific region.

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