Mizuho raises Veeva Systems stock price target after earnings call

Published 02/06/2025, 12:58
Mizuho raises Veeva Systems stock price target after earnings call

On Monday, Mizuho (NYSE:MFG) analysts increased the price target for Veeva Systems stock (NYSE: NYSE:VEEV) to $295 from $280, while maintaining an Outperform rating. The software company, currently valued at $45.58 billion, has seen 22 analysts revise their earnings estimates upward according to InvestingPro data. This adjustment follows Veeva’s fiscal first-quarter 2026 results, which highlighted key developments in the company’s business.

The analysts noted that Veeva’s Crossix Solution significantly contributed to the company’s strong performance in the first quarter. This solution played a major role in the upside seen in Veeva’s financial results, with the company achieving 14.78% revenue growth over the last twelve months. The stock has responded strongly, gaining 20.04% in the past week and trading near its 52-week high of $285.70.

Additionally, Mizuho analysts raised their earnings per share (EPS) estimates for Veeva. For fiscal year 2026, the EPS estimate increased from $7.30 to $7.64, and for fiscal year 2027, it rose from $8.20 to $8.40. This was attributed to better top-line momentum in both the Commercial Cloud and Development Cloud divisions, alongside margin expansion. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with a P/E ratio of 49.78x.

The analysts also discussed the impact of recent developments with Salesforce.com (NYSE:CRM) and Takeda’s CRM customer announcement, as well as Salesforce.com’s current and expected CRM pricing. These factors were considered in the revised projections for Veeva.

With the improved revenue and EPS forecasts, Mizuho analysts adjusted Veeva’s projected price-to-earnings ratio from 34 times to 35 times, based on their calendar year 2026 EPS estimate of $8.40. This led to the revised price target of $295.

In other recent news, Veeva Systems has reported strong financial results for its first fiscal quarter, leading to multiple analysts revising their price targets for the company’s stock. Jefferies increased its price target to $335, citing Veeva’s robust performance in commercial operations and resilience in its research and development segment. TD Cowen also raised their target to $284, highlighting the exceptional results from Veeva’s Crossix business and the company’s upward revision of its revenue and billings guidance by approximately $50-55 million for fiscal year 2026. Citi followed suit, adjusting their price target to $329, noting Veeva’s significant beat on total revenue and billings, as well as strong demand for its Crossix solutions.

RBC Capital Markets raised their target to $330, attributing the decision to Veeva’s enhanced profitability and strong subscription growth, which exceeded market expectations. Additionally, RBC emphasized Veeva’s successful execution in Commercial and Vault CRM migrations. Truist Securities increased their target to $230, despite maintaining a Hold rating, and acknowledged Veeva’s solid quarterly performance and the company’s ability to navigate current market conditions. These recent developments reflect confidence in Veeva Systems’ financial prospects and its continued strength in the life sciences cloud market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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