- 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.
Bitcoin On The Cusp Of ‘Final Correction,’ Says Crypto Analyst
Renowned crypto analyst Michaël van de Poppe recently shared his insight on the potential trajectory of Bitcoin (CRYPTO:
