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Investing.com - Stifel raised its price target on Veeva Systems (NYSE:VEEV) to $320.00 from $295.00 on Thursday, while maintaining a Buy rating on the stock. According to InvestingPro data, Veeva maintains excellent financial health with a "GREAT" overall score, though the stock appears to be trading near its Fair Value. The company holds more cash than debt and boasts strong liquidity metrics.
The price target increase follows Veeva’s quarterly results, which showed revenue growth of 17%, exceeding expectations by 3%, and earnings per share growth of 22% year-over-year, beating estimates by 5%. Normalized billings grew 10%, which was below recent trends but aligned with the company’s guidance. With a P/E ratio of 61.37 and impressive gross margins of 75.5%, InvestingPro analysis reveals 12 additional key insights about Veeva’s valuation and growth prospects.
Veeva’s guidance suggests that billings will grow approximately 10% in the fiscal third quarter before re-accelerating to 13-14% in the fiscal fourth quarter. The company raised its fiscal year 2026 revenue guidance by more than 1% to 14% growth, representing an increase of $42 million above the fiscal second quarter beat of approximately $21 million.
Stifel noted that Veeva’s fiscal year 2026 earnings per share guidance increased by more than 1% to 18% year-over-year growth. The firm estimates that Veeva has over 90% revenue visibility on forward twelve-month revenue, consistent with historical trends.
Despite the positive results, Veeva’s stock fell approximately 4% in after-market trading, potentially reflecting concerns about the pace of billings growth and implied deceleration of subscription growth in the second half of fiscal year 2026. Still, the stock has demonstrated strong momentum, with a 47% return over the past year and is trading near its 52-week high of $296.72. For comprehensive analysis of Veeva’s growth trajectory and peer comparison, access the detailed Pro Research Report available on InvestingPro.
In other recent news, Veeva Systems reported impressive financial results for the second quarter, with revenue hitting $789.1 million, marking a 17% increase year-over-year and surpassing expectations of approximately $768 million. The company also posted an earnings per share of $1.99, exceeding the consensus estimate of $1.90. Despite these strong figures, billings slightly missed the mark, coming in at $666 million against a consensus of $666.5 million. Following these results, several analyst firms have adjusted their price targets for Veeva Systems. Evercore ISI raised its target to $295, maintaining an "In Line" rating, while Raymond James increased its target to $340, keeping an Outperform rating. BTIG also raised its price target to $340, citing strong earnings and maintaining a Buy rating. Additionally, Baird adjusted its price target to $314, highlighting a strong outlook and maintaining an Outperform rating. These developments reflect the company’s significant progress and positive reception among analysts.
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