Endava price target lowered to $17 from $33 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Endava (DAVA) to $17 from $33 and keeps an Equal Weight rating on the shares. Pre-earnings report, the firm expected that management’s original growth targets were likely “overly ambitious,” but even the firm’s wariness and expectations of a 50 basis point cut for the FY25 outlook “proved too optimistic” as management dropped its growth target by 250 basis points at the midpoint, the analyst tells investors. The firm thinks a stable environment may create opportunities, but it will take time for Endava to “sharpen its large deal muscle,” the analyst added.