Guggenheim Lowers Endava Price Target to $20, Keeps Buy Rating

Guggenheim has lowered its price target for Endava (DAVA) to $20 from $25, maintaining a Buy rating. The firm expects upside to Street expectations despite ongoing macroeconomic uncertainty and limited large deal conversions. The price target reduction reflects industry-wide multiple compression.

Title: Guggenheim Lowers Price Target for Endava (DAVA) to $20

In a recent update, Guggenheim has reduced its price target for Endava plc (NYSE:DAVA) to $20, down from $25, while maintaining a Buy rating on the stock. This move reflects industry-wide multiple compression, despite Guggenheim's positive outlook on the company's fundamentals. The firm expects Endava to perform better than market expectations, citing strong financial health and resilience in challenging market conditions.

Guggenheim's decision comes amidst ongoing macroeconomic uncertainty and limited large deal conversions. The firm noted that Endava continues to see traction with clients and expects upside despite these challenges. The company's third-quarter 2025 financial results demonstrated a year-over-year revenue growth of 11.7%, underscoring its focus on AI-driven transformation initiatives.

Endava plc operates globally from its London headquarters, providing digital transformation, software engineering, and managed IT services to clients in sectors such as banking, healthcare, retail, and technology. It is also recognized as one of the Best Quantum Computing Stocks according to Wall Street analysts.

Despite the recent reduction in the price target, Guggenheim maintains a positively skewed risk/reward profile at current price levels. The firm's optimism is bolstered by Endava's strong financial health, with a current ratio of 2.18x, indicating solid liquidity management.

References:
[1] https://www.investing.com/news/analyst-ratings/guggenheim-lowers-endava-stock-price-target-to-20-on-industry-multiple-compression-93CH-4214659
[2] https://ca.finance.yahoo.com/news/jpmorgan-reduces-pt-endava-plc-093150773.html
[3] https://www.ainvest.com/news/3-disruptive-growth-stocks-poised-outperform-2025-2508/
[4] https://finance.yahoo.com/news/jpmorgan-reduces-pt-endava-plc-093150773.html