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On Thursday, Piper Sandler analyst Brent Bracelin increased the price target for Veeva Systems (NYSE:VEEV) shares to $325 from the previous $255, while maintaining an Overweight rating on the stock. Currently trading at $268.37, Veeva’s stock has gained nearly 17% over the past year, with analyst targets ranging from $210 to $330. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.37 out of 5. The revision follows Veeva’s reported acceleration in commercial growth, which reached 17% year-over-year compared to 12% in the previous quarter, marking the highest growth in three years.
The significant uptick in commercial growth led to a substantial $32 million beat in top-line revenue, the largest in four years. With total revenue reaching $2.75 billion and an impressive gross profit margin of 74.5%, Bracelin highlighted this performance as a strong counter to concerns that Salesforce (NYSE:CRM)’s Life Sciences Cloud could impact Veeva’s growth trajectory, a scenario which has not come to fruition. The analyst’s optimism is further bolstered by the increase in the number of live Vault CRM customers, which has grown from 50 to 80 this quarter, with indications that this figure could reach 200 by early next year.
Piper Sandler’s revised price target is based on heightened revenue estimates and a larger enterprise value to free cash flow (EV/FCF) multiple, which has been adjusted to 32 times from the prior 27 times. This increase is deemed justifiable given Veeva’s recovery in commercial growth after three years of moderation. InvestingPro analysis reveals the company trades at elevated multiples, with a P/E ratio of 53.14 and EV/EBITDA of 43.79, reflecting market confidence in its growth potential.
Bracelin’s analysis positions Veeva Systems as a top large-cap growth at a reasonable price (GARP) investment opportunity. The company is recognized for its specialized vertical application and a robust operating margin model, which is expected to help double its revenue to $6 billion by the calendar year 2030. With a market capitalization of $43.87 billion and strong revenue growth of 16.2%, investors seeking deeper insights can access comprehensive valuation metrics and 10+ additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Veeva Systems reported a strong start to fiscal year 2026, with first-quarter earnings per share (EPS) of $1.97, surpassing analyst predictions by $0.23, and revenue figures reaching $759 million, exceeding the consensus estimate of $728.32 million. Subscription revenue, which constitutes a significant portion of the company’s income, grew by 19% year-over-year, contributing to this positive financial outcome. In response to these results, Veeva Systems raised its revenue growth guidance for the fiscal year from 11% to 13% and its EPS growth forecast from 11% to 15%. Analysts from Stifel, Needham & Company, and Scotiabank (TSX:BNS) have all raised their price targets for Veeva Systems, reflecting confidence in the company’s trajectory. Stifel increased the target to $295, Needham to $300, and Scotiabank to $270, while maintaining their respective ratings. The introduction of Veeva AI and the expansion of its commercial data offerings with Veeva CRM Pulse are recent initiatives aimed at enhancing productivity and automation in the life sciences sector. These developments, alongside the company’s strategic execution, have led to a positive outlook from analysts, despite some market concerns. The company’s strong performance has been further supported by the success of its Crossix healthcare analytics business and the continued adoption of Vault CRM.
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