pixdeluxe
Summary
Readers may find my previous coverage via this link. My previous rating was a buy as I believed Endava’s (NYSE:DAVA) long-term growth tailwind remains intact, but I also recommended not to size up any existing position because of the near-term uncertainties. Given that, as of the time of writing, DAVA has almost touched my target price of $75 (the current price is $74), I think it is appropriate to provide an update on my recommendation. I am reiterating my buy rating as there are growing signs that the macro environment might be reaching normalcy in FY24, which is very positive for DAVA as IT spending should recover. As this happens, I expect the market to start re-rating DAVA’s multiple to its historical average as the near-term growth uncertainty is removed.
Financials / Valuation
As expected, 1H24 is going to be an uncertain period. The business reported 1Q24 revenue of £188.4 million, representing a y/y…
