Endava downgraded to Neutral from Buy at Citi

Citi analyst Ashwin Shirvaikar downgraded Endava to Neutral from Buy with a price target of $40, down from $90. The firm says its “below-consensus and below-outlook estimates” for Endava proved too high as the company announced a sharp 9% cut in revenue expectations. Endava’s lack of diversification is an issue as it focuses on the fintech end market which is at a crossroads, the analyst tells investors in a research note. The acquisition of India-based GalaxE helps with diversification but elevates integration risks, adds Citi.