Should I Buy DAVA? DAVA 2026 Analysis

Should You Buy Endava PLC (DAVA) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

6.300

1 Day change

-4.55%

52 Week Range

34.940

Analysis Updated At

2026/01/28

Not a good buy right now for a beginner long-term investor who is impatient. Endava’s latest quarter (FY2026 Q1) showed declining revenue and a swing to a loss, margins compressed, and multiple analysts cut targets after a guidance reset—this is a weak fundamental setup for an immediate long-term entry. With no Intellectia buy signals today and options implying elevated uncertainty, the better decision is to hold off (do not initiate a new position now).

Technical Analysis

Price is ~6.6–6.72 post-market and is sitting near the pivot (Pivot 6.738) with nearby support at 6.457 (S1) and 6.284 (S2); resistance is 7.019 (R1) and 7.192 (R2). Momentum is trying to stabilize but is not convincingly bullish yet: MACD histogram is slightly positive (0.0157) but contracting, suggesting upside momentum is weak/fragile. RSI(6) at 41.2 is neutral-to-soft (not oversold), and moving averages are converging, consistent with a base-building/indecision phase rather than a clear uptrend. Pattern-based probabilities in the dataset lean slightly negative over the next week/month (next week -1.59%, next month -0.32%), which does not support an “buy now” decision for an impatient investor. Intellectia Proprietary Trading Signals: - [AI Stock Picker](module://ai_stock_pick): No signal on given stock today. - [SwingMax](module://swingmax): No signal on given stock recently.

Options Data

Bearish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Open interest put/call ratio at 1.43 is bearish/defensive positioning (more puts outstanding than calls), while today’s volume put/call ratio at 0.22 is more bullish tactically (calls traded more than puts today). Implied volatility is extremely elevated (30D IV ~125.79; IV percentile 97.2), signaling the market is pricing high uncertainty/risk around future moves rather than a calm long-term accumulation phase. Net takeaway: sentiment is mixed, but the very high IV and put-heavy open interest lean toward caution rather than a clean “buy now.”

Technical Summary

Sell

Buy

Positive Catalysts

Valuation/price has fallen enough that analyst targets (even after cuts) remain above current levels (e.g., $8–$15 vs ~$6.6), implying potential upside if execution improves.
Needham highlighted potential AI adoption benefits into 2026 and a re-rating possibility if demand improves.
Company secured a reported multi-year payments client relationship totaling ~$100M (supportive for longer-term revenue visibility).
Near-term trading: call-heavy option volume today and slightly positive MACD suggest a possible short-term stabilization attempt.
Next major catalyst: earnings on 2026-02-20 (pre-market), which could reset expectations if results stabilize.

Neutral/Negative Catalysts

FY2026 Q1 fundamentals deteriorated: revenue down -8.65% YoY, EPS -0.15, net income -$8.157M, and gross margin down to 21.14% (down -15.27% YoY), indicating weakening profitability and operating leverage.
Analysts broadly reacted negatively to the quarter and outlook: multiple price target cuts and a downgrade (William Blair to Market Perform) citing disappointing guidance and a more difficult growth recovery.
Business commentary from analysts points to pipeline conversion weakness and an unexpected client credit impacting performance—near-term execution risk.
Options market is pricing extreme uncertainty (IV percentile 97.
and open interest skew is put-heavy (PCR 1.43), which aligns with cautious positioning.
No supportive news flow in the last week to counterbalance the negative guidance/earnings narrative.

Financial Performance

Latest quarter: FY2026 Q1. Revenue fell to $178.187M (-8.65% YoY). Profitability weakened materially: net income declined to -$8.157M (a sharp deterioration YoY) and EPS dropped to -0.15. Gross margin compressed to 21.14% (down -15.27% YoY). Overall, the quarter reflects contraction (lower sales + lower margins) rather than a growth rebound—unfavorable for a beginner’s long-term “buy now” decision without clearer signs of stabilization.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend is negative: multiple firms cut price targets on 2025-11-12 following a fiscal Q1 miss and FY26 guidance cut (Needham $12→$9 Buy; JPMorgan $13→$10 Neutral; TD Cowen $10→$8 Hold; Guggenheim $18→$15 Buy). William Blair downgraded on 2025-11-11 to Market Perform from Outperform, expecting shares to stay in a near-term penalty box. Wall Street pros view (summary): Pros: Several Buys remain (Needham, Guggenheim) citing longer-term AI/digital transformation potential and large-deal wins. Cons: Near-term fundamentals and execution are weak (miss + guidance cut, pipeline conversion issues), and even Neutral/Hold shops see limited upside until estimates are de-risked. Influential/political trading: No recent Congress trading data available; hedge fund and insider trading trends are reported as Neutral with no significant recent activity.

6 Analyst Rating

Wall Street analysts forecast DAVA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DAVA is 10 USD with a low forecast of 8 USD and a high forecast of 15 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Buy

4 Hold

0 Sell

Moderate Buy

Current: 6.600

Low

Averages

High

Current: 6.600

Low

Averages

High

Needham

Mayank Tandon

Buy

downgrade

$12 -> $9

AI Analysis

2025-11-12

Reason

Needham

Mayank Tandon

Price Target

$12 -> $9

AI Analysis

2025-11-12

downgrade

Buy

Reason

Needham analyst Mayank Tandon lowered the firm's price target on Endava to $9 from $12 and keeps a Buy rating on the shares. The company posted Q1 results below expectations on the top and bottom line and lowered FY26 guidance primarily due to an unexpected client credit and subdued pipeline conversion in the quarter, though on a positive note, Endava secured a multi-year relationship with a payments client totaling $100M, the analyst tells investors in a research note. Needham adds however that given its expectations for AI adoption to begin helping growth over 2026 and the potential for increased demand for digital transformation as economic visibility improves, there's potential for the shares to re-rate over time.

JPMorgan

Neutral

downgrade

$13 -> $10

2025-11-12

Reason

JPMorgan

Price Target

$13 -> $10

2025-11-12

downgrade

Neutral

Reason

JPMorgan lowered the firm's price target on Endava to $10 from $13 and keeps a Neutral rating on the shares. The company reported a fiscal Q1 miss and guidance cut, the analyst tells investors in a research note. The firm sees limited share upside until consensus estimates are "de-risked."

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DAVA Should I Buy

DAVA Should I Buy

Should You Buy Endava PLC (DAVA) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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