Veeva Systems stock price target raised to $295 by Evercore ISI

Investing.com - Evercore ISI has raised its price target on Veeva Systems (NYSE:VEEV) to $295.00 from $285.00 while maintaining an "In Line" rating following the company’s quarterly earnings report. The stock is currently trading near its 52-week high of $296.72, with InvestingPro data indicating the stock is slightly overvalued at current levels.

Veeva Systems reported total revenue of $789.1 million, representing 17% year-over-year growth and exceeding expectations of approximately $768 million. Earnings per share came in at $1.99, ahead of the consensus estimate of $1.90, though billings of $666 million fell slightly short of the $666.5 million consensus. The company maintains impressive profitability with a 75.5% gross margin and strong return metrics, earning it a "GREAT" financial health score from InvestingPro, which offers 12 additional exclusive insights about Veeva’s performance.

The company raised its full-year fiscal 2026 guidance across all metrics, increasing total revenue guidance by $40 million to a range of $3.134-$3.140 billion. Operating income guidance was raised by $28 million to $1.388 billion, while normalized billings guidance increased by $35 million to $3.355 billion. This outlook builds on the company’s strong track record, with revenue growing at 14.78% over the last twelve months.

Crossix was identified as the key driver of commercial solutions growth, with revenue up 13% year-over-year to $307.5 million. The company’s partnership with IQVIA was highlighted as bringing multiple benefits that should unfold over time, particularly enhancing Veeva Nitro’s value in commercial analytics.

Veeva has secured verbal commitments from two additional top-20 biopharma companies, bringing the total to 9 of the top 20, while its CRM product secured another verbal commitment, bringing that total to 3. Vault migrations are reportedly progressing well, with two top-20 biopharmas now live.

In other recent news, Veeva Systems reported impressive financial results for the fiscal second quarter, exceeding market expectations. The company achieved revenue of $789.1 million, marking a 17% increase year-over-year and surpassing consensus estimates of $768 million. Adjusted operating income reached $352.6 million, a 26% rise from the previous year, also beating expectations. Analysts responded positively to these results, with BTIG raising its price target for Veeva to $340 from $335, maintaining a Buy rating. Raymond James also increased its price target to $340 from $310, citing solid progress in key initiatives, including significant wins among top pharmaceutical companies. Baird adjusted its price target to $314 from $310, highlighting a strong outlook and second-quarter billings growth of 10% year-over-year. These developments reflect a positive sentiment among analysts regarding Veeva’s performance and future prospects.

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