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Endava's fair value estimate has been revised lower from £6.51 to £5.66, a reduction of around 13% that crystallises how analyst expectations have shifted after recent updates. This change sits alongside a mix of cautious and constructive commentary, with some analysts focusing on execution risks and repeated guidance cuts, while others still see room for upside if demand pressures ease. Read on to see how this evolving narrative could matter for your view on Endava and what to watch next.
What Wall Street Has Been Saying
🐂 Bullish Takeaways
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TD Cowen previously kept a Buy rating on Endava even after cutting its price target from US$6 to US$4, signaling that some upside was still seen as possible if demand pressures eased.
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Morgan Stanley highlights potential AI related benefits over time, indicating that Endava could see more interest once broader IT budgets improve.
🐻 Bearish Takeaways
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JPMorgan downgraded Endava to Underweight and cut its price target to US$5 from US$9 after another earnings miss and guidance cut, pointing to concerns around revenue predictability and delivery quality.
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Guggenheim moved Endava to Neutral from Buy after fiscal Q3 results came in below management's outlook and described fiscal 2027 as another transitional year, which tempers expectations for near term growth.
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TD Cowen most recently reduced its price target again, to US$3.50 from US$4, citing downside risk to second half estimates as geopolitical uncertainty affects client budgets. This reinforces a more cautious stance on execution and near term demand.
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 1 risk for Endava. See which could impact your investment.
How This Changes the Fair Value For Endava
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Fair value revised from £6.51 to £5.66, a reduction of around 13%.
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Revenue growth rate in pounds adjusted from 2.91% to 2.82%.
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Profit margin in pounds reduced from 1.41% to 0.34%.
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Future P/E updated from 29.2x to 107.0x.
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Discount rate kept unchanged at 13.56%.
Never Miss an Update: Follow The Narrative
Narratives connect Endava's business story to the assumptions behind its earnings outlook and fair value, so you can see how new information reshapes the thesis in real time. They update dynamically as analysts refresh forecasts and highlight new risks or opportunities.
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 enabled offerings such as Morpheus and Compass, along with sector specific AI projects, could broaden its service mix across pharmaceuticals, insurance and automotive clients.
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The potential impact of larger, longer term modernization deals, the GalaxE acquisition and the $100m share buyback program on revenue stability, margins and earnings per share.
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Key risks such as slower AI project sales cycles, economic pressures on client budgets, vertical specific pullbacks in areas such as payments and TMT, and integration challenges tied to recent acquisitions.
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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