Endava Analyst Turns Bullish After Investor Lunch: 'Stock Is Much More Attractive'
Portfolio Pulse from Priya Nigam
Endava PLC (NYSE:DAVA) shares rose after JPMorgan upgraded the stock from Neutral to Overweight, maintaining a price target of $49. The upgrade follows a recent guidance reduction, which JPMorgan believes has overly pressured the stock price, making it more attractive. Analyst Puneet Jain highlighted that near-term guidance is achievable and any signs of stability or growth could lead to a relief rally. Jain also noted Endava's expertise in payments could leverage growth in other verticals, with medium-term growth expected to rebound to match the long-term growth rate for disruptive technologies.
March 19, 2024 | 6:10 pm
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Endava's stock was upgraded by JPMorgan from Neutral to Overweight with a price target of $49, following a recent guidance reduction. The firm believes the stock is now more attractive, with potential for a relief rally on signs of revenue stability or growth.
The upgrade by JPMorgan to an Overweight rating from Neutral, while maintaining a price target of $49, suggests a positive outlook on Endava's stock. This is based on the belief that the recent pressure on the stock price following a guidance reduction is overdone. The potential for a relief rally on signs of revenue stability or growth, along with Endava's expertise in payments, positions the company for potential medium to long-term growth. This analysis is supported by the stock's positive price action following the announcement.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100