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On Thursday, Raymond (NSE:RYMD) James maintained a positive outlook on Veeva Systems (NYSE:VEEV) shares, raising the price target to $310 from the previous $285 while keeping an Outperform rating. Currently trading at $234.49, InvestingPro analysis suggests the stock is slightly undervalued, with analysts setting targets between $201 and $290. The adjustment follows Veeva’s first-quarter results, which demonstrated a significant increase in billings and a more optimistic forecast for the year.
The financial performance of Veeva Systems has shown resilience amid a challenging macroeconomic environment, with the first-quarter results exceeding expectations. With an impressive gross profit margin of 74.5% and strong liquidity indicators, including a current ratio of 4.51, the company’s execution remains robust. Despite some concerns expressed by customers, there has been little to no impact on Veeva’s pipeline or results thus far. Analysts at Raymond James believe that Veeva’s growing strategic importance to pharmaceutical customers may shield the company’s fundamentals from broader market volatility.
Veeva’s first-quarter success was partly attributed to the timing of service deliveries, but analysts also pointed to the strength in Crossix, a Veeva business unit focused on healthcare marketing analytics, as a reason for increased confidence in the company’s commercial growth trajectory. The announcement that Veeva is set to launch a new horizontal CRM application adds another layer of potential growth, extending beyond the company’s targets for 2030.
While the exact timing and scale of success for these new ventures are difficult to predict, Veeva’s historical track record in product development and market penetration has led analysts to give them the benefit of the doubt. With revenue growth of 16.2% over the last twelve months and a five-year revenue CAGR of 20%, this trust appears well-founded. InvestingPro analysis reveals 8 additional key insights about Veeva’s financial health and growth prospects, available exclusively to subscribers through the comprehensive Pro Research Report.
In other recent news, Veeva Systems reported strong financial results for the first quarter of fiscal year 2026, exceeding analysts’ expectations. The company posted earnings per share of $1.97, surpassing the forecasted $1.74, and achieved a revenue of $759 million, outpacing the anticipated $728.32 million. This performance led to an increase in Veeva’s full-year revenue forecast to approximately $3.095 billion, up from the previously estimated $3.047 billion. Stifel analysts responded by raising their price target for Veeva Systems to $295, maintaining a Buy rating due to the company’s robust first-quarter performance. Meanwhile, Morgan Stanley (NYSE:MS) adjusted its price target to $210, while keeping an Underweight rating, noting the competitive pressures in the Customer Relationship Management market. Evercore ISI also lifted its price target to $285, acknowledging Veeva’s strong first-quarter results and the significant contributions from its Crossix segment. Additionally, Veeva Systems announced an increase in its billings guidance for the year, reflecting confidence in future growth, particularly in the digital marketing measurement area.
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