Endava's assessed fair value has been cut on this framework from US$5.34 to US$3.63, signaling a meaningfully lower price target in the current model. Analysts are tying this shift to heightened governance and execution concerns following the accounting investigation, the CFO transition, weaker fiscal Q3 results, and repeated guidance revisions. As you read on, you will see how these moving pieces are shaping the evolving Endava story and what to watch to stay informed about the narrative.
What Wall Street Has Been Saying
🐂 Bullish Takeaways
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Endava still carries a Hold rating at Deutsche Bank, which signals that the stock is not viewed as uninvestable despite current challenges.
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Both Deutsche Bank and William Blair point to the importance of management providing clarity on the accounting investigation, which could help reduce uncertainty once more information is available.
🐻 Bearish Takeaways
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Deutsche Bank cut its Endava price target to US$2 from US$3 and kept a Hold rating, highlighting concern around the accounting investigation and the CFO being placed on administrative leave.
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William Blair downgraded Endava to Underperform from Market Perform, pointing to the CFO transition, the ongoing accounting investigation, weaker fiscal Q3 results, and multiple guidance revisions as key pressure points.
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William Blair also expects Endava shares to stay under pressure until management explains the scope and impact of the accounting issues, underscoring how central governance and execution are to valuation and growth expectations.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!
We've flagged 2 risks for Endava. See which could impact your investment.
How This Changes the Fair Value For Endava
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Fair Value has been reduced from US$5.34 to US$3.63 on this framework.
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Revenue Growth outlook has shifted from 2.76% to 1.69%.
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Net Profit Margin assumption has moved from 0.34% to 2.16%.
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Future P/E has been adjusted from 108.72x to 11.98x.
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Discount Rate remains unchanged at 13.58%.
Never Miss an Update: Follow The Narrative
Narratives link Endava's business story to a financial forecast and an assessed fair value, so you can see how new information changes the long term picture. They update over time as fresh data, guidance, and risks emerge.
Head over to the Simply Wall St Community and follow the Narrative on Endava to stay up to date on:
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How Endava's push into AI driven tools like Morpheus, Compass, and Dava.Flow, along with hyperscaler partnerships, is shaping the mix of higher margin work.
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The impact of larger, longer term, outcome based contracts and the GalaxE acquisition on utilization, earnings quality, and overall margin assumptions.
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Key execution and governance risks, including weaker recent revenue trends, the accounting investigation, and the large goodwill impairment that contributed to a reported statutory loss before tax of £372m.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include DAVA .
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