Endava Shares Surge 6% Following Q4 Beat

Endava (NYSE:DAVA) shares were trading more than 6% higher Wednesday afternoon following the company’s reported Q4 results, with EPS of £0.51 coming in better than the Street estimate of £0.49. Revenue was £180.4 million, compared to the Street estimate of £178.35 million.

The company continues to benefit from sustained demand for digital transformation which continues to outweigh macro headwinds and supply constraints.

Even as concerns linger around a potential macro slowdown, the analysts at Deutsche Bank mentioned that the demand for the company continues to post impressive organic revenue growth and noted that it has not seen any operational slowdown from client behavior.

However, the analysts mentioned that higher costs and lower utilization have impacted margins. They lowered their price target on the company’s shares to $78 from $94, while reiterating their hold rating.