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Endava upgraded to Buy from Hold at HSBC

Endava upgraded to Buy from Hold at HSBC

HSBC analyst Phani Kanumuri upgraded Endava to Buy from Hold with a price target of $45, up from $44. The firm sees EPS bottoming out in Q3 as cost optimization measures should start impacting net income positively, says the Equiniti deal “increases our conviction that Endava could defend its revenue base,” argues the acquisition of GalaxE should help reduce industry and geography concentration risk and boost growth and adds that the valuation “looks very attractive.”

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