BofA raises Veeva Systems price target to $304, keeps neutral rating

On Thursday, BofA Securities analyst Brad Sills adjusted the price target for Veeva Systems (NYSE:VEEV) from $254.00 to $304.00, while maintaining a Neutral rating on the stock. The revision follows Veeva’s reported earnings, which showcased a robust beginning to FY26. According to InvestingPro data, the stock currently trades at a P/E ratio of 53.14, suggesting a premium valuation relative to its peers.

Veeva Systems, a cloud-computing company focused on pharmaceutical and life sciences industry applications, experienced a notable increase in subscription revenue and normalized billings. The subscription revenue reached $635 million, marking a 19% year-over-year growth, while normalized billings climbed to $714 million, a 16% increase from the previous year. These figures surpassed BofA Securities’ expectations, which were set at $636 million for subscription revenue and $637 million for normalized billings. InvestingPro analysis reveals strong fundamentals with a gross profit margin of 74.5% and robust cash flow generation, earning the company a "GREAT" Financial Health score.

The positive performance was attributed to several factors, including the success of Crossix, a healthcare analytics company acquired by Veeva. Foreign exchange rates, deal timing, and contract duration also played a role in the company’s financial achievements. Veeva’s balanced growth was evident across its R&D and Commercial segments, with the R&D division seeing continued momentum in Development Cloud and regulatory wins. Meanwhile, the Commercial Cloud benefited from the adoption of Vault CRM and the accelerating growth of Crossix, which now boasts an annual recurring revenue of approximately $200 million, tripling since its acquisition.

Veeva’s strong start to the fiscal year indicates sustained demand for its services within the life sciences industry, as companies continue to invest in digital transformation and data analytics solutions. The maintained Neutral rating suggests that while the analyst acknowledges the company’s solid performance, investors are advised to maintain their current stance on the stock until further developments.

In other recent news, Veeva Systems reported its first-quarter financial results, surpassing analysts’ expectations with earnings per share (EPS) of $1.97 and revenue of $759 million. This performance exceeded the anticipated EPS of $1.74 and revenue of $728.32 million, highlighting Veeva’s robust execution and strategic expansions. The company also raised its revenue growth guidance for fiscal year 2026 from 11% to 13%, and its EPS growth forecast from 11% to 15% year-over-year. Analysts at Raymond (NSE:RYMD) James, Stifel, and Evercore ISI responded to these results by increasing their price targets for Veeva Systems to $310, $295, and $285 respectively, reflecting confidence in the company’s growth trajectory. Meanwhile, Morgan Stanley (NYSE:MS) raised its price target to $210 but maintained an Underweight rating, citing competitive pressures in the CRM market. Veeva’s Crossix segment, focused on healthcare marketing analytics, was a key contributor to the company’s success, benefiting from the shift towards digital marketing by pharmaceutical companies. Despite macroeconomic uncertainties, Veeva continues to expand its customer base and plans to launch a new horizontal CRM application, signaling potential future growth.

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