01:55 PM EST, 02/29/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target by $17 to $43, 23x our FY 25 (Jun.) EPS view, near peers and below DAVA's three-year historical average (~32x) on slowing growth estimates and continued macroeconomic uncertainty. We lower our FY 24 EPS view to GBP1.15 from GBP1.62 and FY 25's to GBP1.88 from GBP2.31. DAVA posted Dec-Q sales of GBP184M (-11% Y/Y) and EPS of GBP0.30, both near consensus, while guiding for a softer-than-expected FY 24. Dec-Q weakness was led by Banking & Capital Markets (sales -25% Y/Y) and Payments (-21%), with all major verticals declining except the Insurance business (+10%). DAVA also announced its intended acquisition of GalaxE Group for $405M, helping diversify its delivery footprint into India, which we think should help it win some larger deals. In the near term, we expect DAVA to continue struggling to convert its strong pipeline into sales given lingering caution in client transformation spending, but yesterday's announced GBP75M deal with Equiniti is a sign that activity may be starting to improve.