Truist lifts Veeva Systems stock target to $217, retains hold

Published 06/03/2025, 13:34
Truist lifts Veeva Systems stock target to $217, retains hold

On Thursday, Truist Securities updated its outlook on Veeva Systems (NYSE:VEEV), raising the price target from $210.00 to $217.00 while maintaining a Hold rating on the company’s shares. With a market capitalization of $35.7 billion and an "GREAT" financial health score according to InvestingPro, the company trades at a P/E ratio of 53.4. This adjustment follows Veeva Systems’ announcement of financial results for the fourth quarter of fiscal year 2025, which surpassed consensus expectations.

Veeva Systems also provided guidance for fiscal year 2026 that, once adjusted for foreign exchange (FX) impacts, was ahead of market consensus. The company demonstrated strong performance with revenue growth of 16.2% and impressive gross margins of 74.5%. The company’s Vault CRM platform experienced growth, with the addition of 20 new customers during the quarter. Notably, these new clients predominantly consist of smaller companies selecting their first CRM system.According to InvestingPro, the company holds more cash than debt on its balance sheet and maintains strong liquidity metrics. Subscribers can access 10+ additional ProTips and comprehensive financial analysis in the Pro Research Report.

The company has expressed confidence in its ability to secure the majority of the top 20 pharmaceutical companies as customers and anticipates securing multiple commitments from this group to Vault CRM within the year 2025. The analyst noted that the stock market had already priced in stable expectations, suggesting that the better-than-expected results could lead to a positive reception among investors.

Truist Securities’ decision to raise the price target reflects these developments, indicating a recognition of Veeva Systems’ recent performance and future prospects. The Hold rating suggests that while acknowledging the company’s solid results and outlook, the analyst advises maintaining the current position without further action at this time.

In other recent news, Veeva Systems reported strong financial results for the fourth quarter of fiscal year 2025, surpassing analysts’ expectations with earnings per share of $1.74 and revenue of $721 million. This performance exceeded the forecasted earnings per share of $1.58 and revenue of $699.18 million. The company’s robust financial health was further emphasized by a 17% year-over-year growth in normalized billings, reaching $1.24 billion. Evercore ISI responded to these results by raising its price target for Veeva Systems to $250, citing the company’s impressive fourth-quarter performance and strong profitability. Meanwhile, Raymond (NSE:RYMD) James adjusted its price target to $285, acknowledging Veeva’s expanding product suite and its growing influence in the market. Veeva Systems also announced new AI-driven products, including Veeva Pulse, which are expected to enhance its competitive position. Despite some foreign exchange headwinds anticipated to impact annual revenue by approximately $20 million, Veeva remains confident in maintaining its strong operating margins. The company is targeting $6 billion in revenue by 2030, supported by anticipated subscription growth in fiscal 2026.

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