In early trading on Tuesday, shares of Endava PLC DAVA were on the rise.
JPMorgan expressed that the recent dip in the company’s stock price, due to guidance adjustments, was excessive, making the stock now “much more attractive.”
The Turnaround: Puneet Jain, the Endava analyst, upgraded the rating of the company from Neutral to Overweight, while maintaining the price target at $49.
The Analyst’s View: Jain indicated that while the near-term outlook seemed feasible, any signs of revenue stability or growth could lead to a significant upswing in the stock price.
Reflecting on an investor lunch hosted by JPMorgan with Endava’s management, the analyst stated, “Near-term challenges should be temporary, and Endava anticipates a recovery in medium-term growth (post FY26) to align with the long-term growth trend for transformative technologies, estimated at 15-20% or higher.”
Furthermore, Jain highlighted, “Endava’s strong foothold in payment technologies positions the company favorably to use ‘payments as a horizontal’ for expansion into other sectors.”
Market Response: Endava shares surged by 5.89% to $39.11 at the time of reporting on Tuesday.
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Image: Courtesy of Endava
