Endava initiated with a Neutral at Redburn Atlantic

Redburn Atlantic analyst Harry Read initiated coverage of Endava with a Neutral rating and $33.10 price target. The analyst launched coverage on the digital transformation subsector of IT services with a slightly negative outlook compared with the market. However, there are many company-specific factors that contribute to the varying organic revenue growth profiles and valuations that have been accentuated by the recent “supercycle,” the analyst tells investors in a research note. The firm says financial services has driven the weakness in Endava’s recent organic revenue growth.