Needham raised the firm’s price target on Endava (DAVA) to $43 from $36 and keeps a Buy rating on the shares. The firm is also naming the stock Needham’s 2025 top pick and adding it to the “Needham Conviction” list. Endava results over the past several quarters have been challenged and resulted in the shares underperforming its peers, but Needham believes that by diversifying both its industry and delivery mix through organic and M&A efforts, the company is entering 2025 on solid footing. Endava stands to benefit from an improving and broadening demand environment for next gen technologies that includes rapid adoption of AI solutions by Global 2000 companies, while the stock is trading at a FY26 P/E multiple of about 14.5-times – a steep discount to its peers, the analyst tells investors in a research note.
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