Should I Buy DAVA? DAVA 2026 Analysis

Should You Buy Endava PLC (DAVA) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Sell

Latest Price

5.460

1 Day change

7.27%

52 Week Range

34.940

Analysis Updated At

2026/02/04

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Not a good buy right now: price is in a confirmed downtrend (bearish MAs + worsening MACD), so odds favor continued weakness despite being oversold.
Oversold RSI (≈14.9) can spark a short bounce, but the trend and fundamentals suggest bounces are likely to be sold.
With the user being impatient and unwilling to wait for a cleaner entry/reversal, the better action is to avoid/new-buy and sell/exit if already holding.
Next major catalyst is earnings (2026-02-20 pre-market); direction risk is high into the event after guidance-related downgrades.

Technical Analysis

Trend: Bearish. Moving averages are stacked negatively (SMA_200 > SMA_20 > SMA_5), confirming a sustained downtrend.
Momentum: MACD histogram -0.119 and negatively expanding → downside momentum is increasing, not stabilizing.
RSI: RSI_6 at 14.864 is deeply oversold → bounce potential exists, but oversold in a strong downtrend is not a reliable buy signal by itself.
Levels: Immediate support zone S1 ~5.691 and S2 ~5.314; price (5.6) is already below S1, increasing risk of a drift toward S2. Key overhead pivot ~6.302 (first meaningful reclaim level); resistance R1 ~6.913.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: Put-call ratios are extremely low (OI PCR 0.23; volume PCR 0.02) → options flow/skew is call-heavy (bullish tilt), but this can also reflect speculative dip-buying rather than informed strength.
Volatility: 30D IV ~128.3 vs historical vol ~53.1; IV percentile ~91% → options are pricing very large moves and elevated uncertainty.
Activity: Today’s volume (134) is far below recent averages (5D avg 638; 10D avg 1759) → the bullish put-call ratios come from light volume, so sentiment signal is less convincing.
Takeaway: Options market is expensive and uncertain; call-skew exists but does not outweigh the bearish trend and weak fundamentals.

Technical Summary

Sell

Buy

Positive Catalysts

- Deeply oversold RSI increases odds of a short-term technical bounce.
- Options skew is call-heavy (very low put-call ratios), suggesting some traders are positioning for upside.
- Upcoming earnings (2026-02-20 pre-market) can act as a volatility catalyst if results/guidance surprise positively.
- Prior commentary referenced potential longer-term AI/digital transformation demand tailwinds (longer-dated, not immediate).

Neutral/Negative Catalysts

- Downtrend is intact and momentum is still deteriorating (MACD worsening; bearish MA stack).
- Latest quarter showed sharp deterioration (revenue down YoY; net income and EPS turned materially negative; gross margin down) → weak operating backdrop.
- Analyst sentiment recently turned more cautious: multiple price target cuts and a downgrade to Market Perform.
- No supportive near-term news flow; next catalyst is earnings, which carries downside risk given recent guidance disappointments.
- No notable insider/hedge fund accumulation signals provided (both neutral).

Financial Performance

Latest quarter: 2026/Q1.
Revenue: 178.187M, down -8.65% YoY → contracting top line.
Profitability: Net income -8.157M (down -463.02% YoY) → moved deeper into losses.
EPS: -0.15 (down -475.00% YoY) → significant earnings deterioration.
Gross margin: 21.14%, down -15.27% YoY → margin compression, implying weaker pricing/utilization and/or unfavorable mix.
Overall: Growth and margin trends are negative, which typically limits durability of any technical bounce.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: Clear negative revision cycle concentrated around 2025-11 (miss + guidance cut context).
Price target cuts (still varying): Needham cut to $9 (Buy), JPMorgan cut to $10 (Neutral), TD Cowen cut to $8 (Hold), Guggenheim cut to $15 (Buy).
Downgrade: William Blair moved to Market Perform from Outperform, citing repeated disappointing guidance and expectation shares remain in the “penalty box.”
Wall Street pros: Long-term re-rating potential tied to AI adoption/digital transformation and large deal wins.
Wall Street cons: Near-term execution/growth uncertainty, weaker pipeline conversion, guidance credibility pressure, and limited upside until estimates are de-risked.
Politicians/Congress: No recent congress trading data available; no politician activity indicated.

6 Analyst Rating

Wall Street analysts forecast DAVA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DAVA is 10 USD with a low forecast of 8 USD and a high forecast of 15 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Buy

4 Hold

0 Sell

Moderate Buy

Current: 5.090

Low

Averages

High

Current: 5.090

Low

Averages

High

Needham

Mayank Tandon

Buy

downgrade

$12 -> $9

AI Analysis

2025-11-12

Reason

Needham

Mayank Tandon

Price Target

$12 -> $9

AI Analysis

2025-11-12

downgrade

Buy

Reason

Needham analyst Mayank Tandon lowered the firm's price target on Endava to $9 from $12 and keeps a Buy rating on the shares. The company posted Q1 results below expectations on the top and bottom line and lowered FY26 guidance primarily due to an unexpected client credit and subdued pipeline conversion in the quarter, though on a positive note, Endava secured a multi-year relationship with a payments client totaling $100M, the analyst tells investors in a research note. Needham adds however that given its expectations for AI adoption to begin helping growth over 2026 and the potential for increased demand for digital transformation as economic visibility improves, there's potential for the shares to re-rate over time.

JPMorgan

Neutral

downgrade

$13 -> $10

2025-11-12

Reason

JPMorgan

Price Target

$13 -> $10

2025-11-12

downgrade

Neutral

Reason

JPMorgan lowered the firm's price target on Endava to $10 from $13 and keeps a Neutral rating on the shares. The company reported a fiscal Q1 miss and guidance cut, the analyst tells investors in a research note. The firm sees limited share upside until consensus estimates are "de-risked."

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DAVA Should I Buy

DAVA Should I Buy

Should You Buy Endava PLC (DAVA) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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