Tonix Pharmaceuticals stock halted ahead of FDA approval news
On Thursday, Scotiabank (TSX:BNS) analyst Allan Verkhovski increased the price target for Veeva Systems (NYSE:VEEV) shares to $270.00, up from the previous target of $245.00, while maintaining a Sector Perform rating on the stock. According to InvestingPro data, Veeva maintains strong financial health with a "GREAT" overall score, supported by robust profitability and cash flow metrics. This adjustment follows Veeva Systems’ announcement of a robust first quarter, which saw subscription revenue growth—adjusted for Total (EPA:TTEF) Financial Contribution (TFC)—accelerate to 19% from 17% in the last quarter, marking a $19 million beat that surpassed Veeva’s previous record beat of $13 million in Q4. The company’s strong performance is reflected in its trailing twelve-month revenue growth of 16.2% and impressive gross profit margin of 74.5%.
Veeva Systems has successfully translated this quarter’s performance into its guidance for fiscal year 2026, excluding foreign exchange (FX) tailwinds. Despite a challenging macroeconomic environment and customer discussions indicating widespread concern, Veeva has not observed any significant impact on its financial outcomes or sales pipeline.
The company’s Commercial revenue growth was notably driven by Crossix, which boasts a revenue run rate exceeding $200 million and is growing at a rate of over 30%. Crossix’s success in the Measurement and Audiences sector has contributed to Veeva’s market share expansion. Additionally, Veeva anticipates that approximately 200 Vault CRM customers will be operational next year, not accounting for any commitments to Vault CRM. Of the 28 new Vault CRM customers acquired during the quarter, around half were migrations, while the remaining were entirely new to Veeva’s customer base.
Veeva Systems also reported its largest operating margin beat, with Q1 non-GAAP operating margins reaching 46% and GAAP operating margins at 31%. Although the stock’s value increased by 16% after hours, Verkhovski believes that the current share price reflects the potential growth opportunities ahead. The revised price target of $270 is based on a 28x C2026E EV/FCF multiple, as stated by the analyst. InvestingPro analysis shows the stock trading at a P/E ratio of 53.1x and an EV/EBITDA multiple of 43.8x, suggesting premium valuation metrics. For deeper insights into Veeva’s valuation and growth prospects, including 10+ additional ProTips and comprehensive financial analysis, check out the full Pro Research Report available on InvestingPro.
In other recent news, Veeva Systems reported impressive first-quarter earnings, with an EPS of $1.97 and revenue of $759 million, both surpassing analyst expectations. The company anticipates continued growth, projecting second-quarter revenues between $766-769 million and full fiscal year 2026 revenues of $3.09-3.1 billion, exceeding consensus estimates. Analysts have responded positively, with firms like Evercore ISI, Stifel, and Raymond (NSE:RYMD) James raising their price targets, reflecting confidence in Veeva’s financial performance and growth prospects.
BofA Securities also increased its price target to $304, maintaining a Neutral rating, while acknowledging Veeva’s strong start to the fiscal year. Veeva’s subscription revenue grew by 19% year-over-year, contributing to its robust financial results. The company has launched new initiatives, such as Veeva AI and Veeva CRM Pulse, to enhance productivity and expand its commercial data offerings. Despite some competitive pressures in the CRM market, analysts like those from Morgan Stanley (NYSE:MS) recognize Veeva’s resilience, albeit with caution, as they raised their price target to $210.
Veeva’s strategic importance to pharmaceutical clients and its successful execution amid a challenging macroeconomic environment have been highlighted by analysts. The company’s ability to achieve its 2025 revenue run rate goal early marks a significant milestone, setting a positive trajectory for future growth.
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