Raymond James reiterates Outperform rating on Veeva Systems stock after Merck win

Investing.com - Raymond (NSE:RYMD) James maintained its Outperform rating and $310.00 price target on Veeva Systems (NYSE:VEEV), a $46.2 billion market cap company with strong financial health, following the company’s announcement of a new commitment from Merck (NSE:PROR). According to InvestingPro data, the company maintains excellent profitability with a 75.5% gross margin.

Veeva Systems secured a commitment from Merck (known internationally as MSD), marking the sixth top 20 global pharmaceutical company to commit since Veeva announced its transition from Salesforce (NYSE:CRM)’s back-end to its own Vault platform.

The latest win builds upon a long-term strategic partnership between Veeva and Merck announced in late 2022, which established a framework for the companies to jointly develop industry-tailored solutions.

This commitment follows Veeva’s recent win with Astellas Pharmaceuticals in June and adds to previous commitments from Novo Nordisk (NYSE:NVO), Boehringer Ingelheim, GSK, and Bayer (OTC:BAYRY), while competitors Pfizer (NYSE:PFE) and Takeda have opted for Salesforce’s more customized deployments.

Veeva Systems stock has increased 35% year-to-date and is currently trading near its 52-week high of $291.69, with Raymond James noting the performance has been driven largely by strong billings upside over recent quarters, though the firm expects CRM market share dynamics to remain a key topic in upcoming quarters. For deeper insights into Veeva’s valuation and growth prospects, check out the comprehensive analysis available on InvestingPro.

In other recent news, Veeva Systems has reported strong financial results for the first fiscal quarter, prompting several analyst firms to adjust their outlooks. Mizuho (NYSE:MFG) raised its price target for Veeva Systems to $295, citing significant contributions from the Crossix Solution and an increase in earnings per share estimates for fiscal years 2026 and 2027. Jefferies also increased its price target to $335, highlighting Veeva’s robust margins and growth in commercial operations despite challenges in the pharmaceutical supply chain sector. TD Cowen lifted its price target to $284, attributing the adjustment to exceptional results from Veeva’s Crossix business and an upward revision in revenue and billings guidance for fiscal year 2026.

Additionally, Veeva Systems has announced a strategic collaboration with Sarah Cannon Research Institute to adopt the Veeva Clinical Platform, aiming to streamline oncology clinical trials. The partnership is expected to enhance data flow and collaboration across SCRI’s extensive network of research sites. In another development, Astellas has selected Veeva Vault CRM for its global commercial operations, including a specialized version for China, to improve agility and execution. These recent developments underscore Veeva’s continued expansion and influence in the life sciences industry.

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