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On Thursday, Veeva Systems Inc. (NYSE:VEEV) shares saw a significant increase, climbing approximately 16% in after-hours trading. This rally followed the announcement by RBC Capital Markets that it has raised the price target on the company’s stock to $330 from the previous target of $285, while retaining an Outperform rating. With a market capitalization of $46.2 billion and a strong financial health score rated as "GREAT" by InvestingPro, Veeva continues to demonstrate robust market presence.
The price target adjustment came after Veeva Systems reported robust financial results, which the company attributed to continued commercial momentum. The firm’s fiscal year 2026 guidance was revised upward, surpassing consensus estimates, a move bolstered by favorable foreign exchange tailwinds, enhanced profitability, and sustained strength in subscription services. The company’s impressive 74.5% gross profit margin and 16.2% revenue growth demonstrate its operational efficiency. InvestingPro analysis reveals 10+ additional key metrics and insights available for subscribers.
RBC Capital analysts noted that Veeva’s performance in the first quarter was a solid kickoff to the year. The company’s subscription growth and billings were particularly strong, aligning well with or exceeding market expectations. Veeva’s management was credited for adeptly navigating the uncertain macroeconomic landscape, which has been a concern for many in the industry. The company’s strong balance sheet, with a current ratio of 4.51 and more cash than debt, positions it well for continued growth.
The analysts also highlighted Veeva’s Commercial and Vault CRM migrations as indicators of the company’s strong execution abilities. These migrations are part of the reason for the analysts’ confidence in the management’s operational capabilities.
Veeva Systems’ Clinical platform was another area of positive focus. RBC Capital described it as best in class, with the potential for suite expansion across the business. This capability is expected to drive further growth and profitability for Veeva, reinforcing the firm’s optimistic stance on the stock’s future performance.
In other recent news, Veeva Systems has reported strong financial performance in its first quarter, prompting several analysts to revise their price targets for the company. Piper Sandler increased its price target to $325, citing a significant 17% year-over-year growth in commercial activities and a $32 million revenue beat, marking the highest growth in three years. Stifel also raised its target to $295, noting a 19% year-over-year increase in subscription revenue, which makes up 85% of Veeva’s total revenue. Needham & Company set its new target at $300, highlighting Veeva’s successful transition to the Vault platform and ongoing customer growth.
Additionally, Scotiabank (TSX:BNS) updated its price target to $270, driven by Veeva’s robust subscription revenue growth and a notable operating margin performance. Truist Securities adjusted its target to $230 following Veeva’s "Beat and Raise" performance, despite a setback with Takeda Pharmaceutical (TADAWUL:2070) opting for a custom-built solution. The analysts from these firms have expressed confidence in Veeva’s ability to navigate current market conditions and maintain its growth trajectory. The company’s strategic moves, such as expanding its Vault CRM customer base and leveraging its Crossix platform, are seen as key drivers of its recent success. These developments reflect a positive outlook for Veeva Systems, as it continues to perform well amidst a challenging macroeconomic environment.
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