Needham reiterates Buy rating on Veeva Systems stock, citing AI potential

Published 17/10/2025, 11:28
Needham reiterates Buy rating on Veeva Systems stock, citing AI potential

Investing.com - Needham maintained its Buy rating and $355.00 price target on Veeva Systems (NYSE:VEEV) following the company’s 2025 Analyst Day. The company, currently trading at $292.73 and maintaining a "GREAT" financial health score according to InvestingPro, has demonstrated robust revenue growth of 15.33% over the last twelve months.

The research firm expressed confidence in Veeva’s diversified product portfolio, noting that management plans to meet or exceed third-quarter 2026 guidance, demonstrating progress toward its 2030 targets. With a strong balance sheet showing more cash than debt and liquid assets exceeding short-term obligations, Veeva appears well-positioned for growth. (InvestingPro offers 11 additional tips about Veeva’s financial position.)

Needham highlighted AI agents as a significant focus during the event, with rollouts planned for 2025 and 2026, followed by usage-based monetization strategies thereafter.

The firm also pointed to Veeva’s new markets initiative, which is preparing to welcome its first customers, though the company’s 2030 targets currently assume no contribution from either this initiative or the AI developments.

Needham views Veeva’s 2030 targets as "achievable, if not conservative," and remains bullish on what it describes as a "durable execution story."

In other recent news, Veeva Systems has seen significant developments that could impact its future performance. TD Cowen has raised its price target for Veeva Systems from $62 to $68, maintaining a Buy rating, and expects the company’s annual recurring revenue to grow by 19% year-over-year for the third quarter of fiscal year 2025. This aligns with analysts’ expectations and reflects strong third-quarter trends. Additionally, Veeva Systems announced a long-term partnership with OpenEvidence to develop an AI platform named Open Vista, aimed at enhancing clinical trials and drug discovery. In another strategic move, Veeva plans to roll out AI agents across its applications starting in December 2025, with further expansions through 2026. Bristol Myers Squibb has committed to using Veeva’s Vault CRM platform to improve healthcare practitioner engagement through AI-enhanced features. These recent developments highlight Veeva Systems’ ongoing focus on leveraging artificial intelligence and strategic partnerships to bolster its offerings in the life sciences sector.

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