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On Thursday, TD Cowen adjusted its outlook on Veeva Systems (NYSE:VEEV) shares, increasing the price target to $284 from the previous $261 while maintaining a Hold rating on the stock. The adjustment comes in the wake of the company’s first-quarter performance, which was bolstered by the exceptional results from its Crossix business, a segment that deals with data analytics for healthcare marketing. According to InvestingPro data, Veeva’s stock is currently trading above its Fair Value, with analyst targets ranging from $210 to $330. The company maintains strong profitability with a 74.5% gross margin.
The strong first-quarter results were attributed to the outperformance of Crossix, particularly in the short-term usage business, which also positively impacted billings. Management at Veeva Systems has revised their revenue and billings guidance for the fiscal year 2026 upwards by approximately $50-55 million each. This updated guidance takes into account a conservative outlook for the rest of the fiscal year after adjusting for foreign exchange influences and the first-quarter performance. InvestingPro analysis shows the company’s robust financial health with an overall score of "GREAT," supported by strong revenue growth of 16.2% over the last twelve months.
Despite the conservative forecast for the rest of the fiscal year, TD Cowen analysts see potential for ongoing strength in the Crossix segment. They believe large pharmaceutical companies will continue to leverage Crossix’s capabilities to maximize sales before the loss of exclusivity on certain drugs. The analysts have estimated Veeva’s revenue for fiscal years 2026 and 2027 to be $3.10 billion and $3.49 billion, respectively, an increase from their earlier projections of $3.05 billion and $3.44 billion. Adjusted operating income estimates have also been raised to $1.36 billion for FY26 and $1.58 billion for FY27, up from the previous $1.30 billion and $1.53 billion estimates. For deeper insights into Veeva’s valuation and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed analysis of the company’s financial health and growth trajectory.
The new price target of $284 is grounded in a discounted cash flow (DCF) analysis conducted by TD Cowen. The analysis suggests that Veeva shares could trade at 13 times the analysts’ calendar year 2026 revenue estimate and 35 times their forecast for calendar year 2026 free cash flow. This revised price target reflects the firm’s assessment of Veeva’s financial prospects and the underlying strength observed in the company’s recent performance.
In other recent news, Veeva Systems has reported impressive financial results, which have led several analysts to adjust their price targets for the company’s stock. Citi analyst Tyler Radke increased the price target to $329, maintaining a Buy rating, citing Veeva’s strong quarterly performance and robust demand for its Crossix solutions and Vault CRM. RBC Capital Markets also raised its price target to $330, highlighting Veeva’s upward revision of its fiscal year 2026 guidance and the company’s adept management of macroeconomic challenges. Piper Sandler’s Brent Bracelin elevated the price target to $325, noting a significant acceleration in Veeva’s commercial growth and a substantial revenue beat.
Stifel analysts increased their price target to $295, emphasizing Veeva’s 19% year-over-year subscription revenue growth and the company’s raised revenue and EPS guidance. Truist Securities, while maintaining a Hold rating, lifted the price target to $230, acknowledging Veeva’s strong first-quarter performance despite a setback with Takeda Pharmaceutical (TADAWUL:2070) Company (NYSE:TAK). The analysts from these firms have noted Veeva’s resilience and strong execution capabilities in the face of uncertain market conditions. These recent developments underscore the confidence analysts have in Veeva Systems’ growth trajectory and operational strength.
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