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On Thursday, Citi analyst Tyler Radke adjusted the price target for Veeva Systems (NYSE:VEEV) shares, increasing it to $329 from the previous $265, while reiterating a Buy rating for the company. This decision follows Veeva Systems’ recent financial performance, which Radke described as one of their strongest quarterly results in memory. According to InvestingPro data, the company maintains excellent financial health with a "GREAT" overall score and impressive 74.5% gross profit margins.
Veeva Systems outperformed expectations with a significant beat on total revenue and billings, surpassing estimates by 4 to 5 percentage points. The company also modestly increased its annual guidance. With revenue growth of 16.2% over the last twelve months and total revenue reaching $2.75 billion, the core fundamentals of the business remained unaffected by external uncertainties related to tariffs or the life sciences sector.
The analyst highlighted the robust demand for Veeva’s Crossix solutions within the Commercial sector. Veeva’s strong position in the life sciences cloud market is further evidenced by the continued adoption of its Vault CRM, which now boasts 80 live customers, and new top 20 biopharma wins in the R&D space, particularly in Clinical eTMF+ Regulatory Submissions.
Citi’s revised estimates now align with the higher end of Veeva’s updated outlook, which suggests a less risky Q4 billings seasonality, taking into account the timing benefits realized in Q1. The increased price target to $329 reflects a forward-looking valuation of 31 times the fiscal year 2027 enterprise value to free cash flow (EV/FCF). Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. Discover more insights and 10+ additional ProTips about Veeva Systems in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Radke’s comments underscore the company’s ongoing success with Vault CRM and the significant growth opportunities that lie ahead for Veeva Systems in development, data, and commercial cloud offerings, all while maintaining industry-leading profit margins. The updated assessment by Citi conveys confidence in Veeva Systems’ long-term growth trajectory and market position.
In other recent news, Veeva Systems reported strong financial results that have led to multiple analyst firms adjusting their price targets for the company’s stock. RBC Capital Markets raised its price target to $330, citing robust financial performance and upward revisions in fiscal year 2026 guidance, driven by strong subscription growth and favorable foreign exchange impacts. Similarly, Piper Sandler increased its target to $325, noting a 17% year-over-year growth in commercial operations and a significant revenue beat. Stifel also adjusted its target to $295, highlighting a 19% year-over-year increase in subscription revenue, which makes up a significant portion of Veeva’s total revenue.
Needham & Company raised its target to $300, expressing confidence in Veeva’s transition to the Vault platform and its robust commercial segment performance. Truist Securities increased its price target to $230, maintaining a Hold rating, despite a recent setback with Takeda Pharmaceutical (TADAWUL:2070) opting for a custom CRM solution. The company’s first-quarter results were described as a "Beat and Raise" performance, leading to upward guidance revisions for fiscal year 2026. Analysts across the board have emphasized Veeva’s strong execution capabilities, noting that the company continues to navigate the macroeconomic environment effectively. These developments reflect the market’s positive reception to Veeva’s recent performance and strategic direction.
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