Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
LONDON - Endava (NYSE: DAVA), a global technology services provider with a market capitalization of $1.09 billion, has joined OpenAI’s Beta Services Partner Program, the company announced today. The stock has shown resilience with an 8% gain over the past week, according to InvestingPro data. This move follows a year-long collaboration between Endava and OpenAI, during which they have developed industry-first products and services for clients.
The partnership aims to bolster Endava’s position in the enterprise AI adoption market by leveraging OpenAI’s advanced AI technologies. With annual revenue of $951 million and a healthy current ratio of 1.88, Endava appears well-positioned to execute its growth strategy. Endava’s CEO, John Cotterell, remarked on the formalization of their relationship as a step forward in their joint mission to empower global enterprises with AI capabilities.
Ksenia Chumachenko, Head of GTM Partnerships at OpenAI, acknowledged Endava’s role in the Services Partner Program and their efforts to make AI accessible and beneficial for enterprises. She highlighted Endava’s proven track record in deploying AI solutions and their potential to assist more enterprises in implementing AI technologies.
Over the past year, Endava has created AI solutions for clients using OpenAI’s technologies, including their AI accelerator, Morpheus, and Compass, a core modernization discovery accelerator. These initiatives underscore the shared goal of both organizations to support customers in their transition to AI-native operations.
Endava, known for its AI-native approach, combines cutting-edge technology with deep industry expertise to drive business transformation. The company serves a diverse range of sectors, including finance, technology, media, healthcare, and retail, with over 11,000 employees as of December 31, 2024.
The information in this article is based on a press release statement. While Endava trades at a premium earnings multiple of 153x, InvestingPro analysis suggests the stock may be undervalued based on its Fair Value calculation. Investors can access detailed financial analysis, 8 additional ProTips, and a comprehensive Pro Research Report for Endava through InvestingPro’s extensive coverage of over 1,400 US stocks.
In other recent news, Endava reported its second-quarter fiscal year 2025 earnings, with an adjusted diluted EPS of 0.3p, surpassing analyst expectations of 0.25p. However, the company’s revenue of £195.6 million fell slightly short of projections. Despite this, Endava maintained strong performance in North America, with a notable 32.7% increase in revenue. Additionally, the company has projected revenue for the third quarter to range between £198 million and £200 million, with full-year revenue expected to be between £795 million and £800 million. Needham analysts adjusted their financial outlook for Endava, lowering the price target from $43.00 to $38.00, while retaining a Buy rating. This adjustment comes amidst a decline in revenue from the Technology, Media, and Telecommunications vertical, although profit before tax margins and EPS exceeded expectations due to effective cost management. The company is also optimistic about its AI initiatives, which are expected to drive growth in the latter half of 2025 and into 2026.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.