- Needham analyst Mayank Tandon reiterated a Buy rating on the shares of Endava Plc (NYSE:DAVA), lowering the price target to $68 from $90.
- Endava’s 3Q FY23 results exceeded expectations on the top and bottom lines as demand remained solid through the quarter.
- Despite strength in 3Q, the analyst expects Endava’s growth to be pressured over the next few quarters due to ongoing macro pressure.
- The company’s demand from private-equity-backed clients in the TMT and payments/financial services verticals has taken a step back due to elevated interest rates and additional uncertainty due to the ongoing U.S. regional banking crisis.
- With the bear case assumption, the analyst notes that the macroeconomic environment will deteriorate in the coming quarters, negatively impacting client demand for digital transformation services.
- The analyst believes that while the near-term outlook is disappointing, growth will inflect higher and return to trend (20%+) once economic conditions stabilize.
- Price Action: DAVA shares are trading lower by 6.15% to $50.86 on the last check Wednesday.
MacroGenics Shares Tumble After Reporting Adverse Events, Multiple Deaths In Cancer Drug Trial
Latest interim data from TAMARACK Phase 2 study by MacroGenics unveils insights into vobramitamab duocarmazine targeting B7-H3 in metastatic prostate cancer. Despite responses, notable safety concerns reported.
