Citi lowers Endava target, opens ‘negative catalyst watch’

Citi analyst Ashwin Shirvaikar lowered the firm’s price target on Endava to $63 from $65 and keeps a Buy rating on the shares. The analyst also opened a “90-day negative catalyst watch” on the shares. The firm expects Endava to provide an initial fiscal 2024 revenue outlook that is below expectations due to the macro environment, client-specific factors, and currency moves. Given the likely late earnings date relative to peers, there could also be some negative stock reaction as other IT services companies likely provide negative-leaning data points as they report, the analyst tells investors in a research note.