Asia FX muted despite Fed cut bets; Japanese yen slides after PM Ishiba resigns
Investing.com - TD Cowen has reduced its price target on Endava PLC (ADR) (NYSE:DAVA) to $12.00 from $16.00 while maintaining a Hold rating on the stock. The stock, currently trading at $9.97, has fallen over 67% year-to-date, with analyst targets ranging from $11.04 to $42.69. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The adjustment follows Endava’s lower-than-expected first-quarter and fiscal year 2026 guidance, which TD Cowen characterized as "another reset" for the company.
According to TD Cowen, Endava is implementing necessary changes to its go-to-market strategy and delivery model to adapt to the rapidly evolving generative AI landscape and volatile services spending environment.
The research firm noted that investor appetite for surprises is "nil" following challenges Endava has faced over the past approximately two years.
TD Cowen expects Endava shares to remain range-bound until the company demonstrates consistency following its transition period.
In other recent news, Endava reported its fourth-quarter 2025 earnings, showing a slight beat on earnings per share (EPS) with a result of £0.24, which was above the forecasted £0.23. Revenue for the quarter was £186.8 million, aligning with expectations but showing a 3.9% decline compared to the previous year. Guggenheim has adjusted its price target for Endava to $18.00 from $20.00, citing a softer outlook for fiscal year 2026 due to macroeconomic challenges and issues related to artificial intelligence. Despite maintaining a Buy rating, the firm noted the company’s quarterly underperformance. Similarly, Needham lowered its price target for Endava to $12.00 from $20.00, while also keeping a Buy rating, due to cautious client spending and below-consensus guidance for the upcoming fiscal year. These recent developments have raised concerns about Endava’s future growth and market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.