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Investing.com - Wells Fargo raised its price target on Veeva Systems (NYSE:VEEV) to $326.00 from $300.00 on Tuesday, while maintaining an Overweight rating on the stock. The company, currently valued at $46.7 billion, is trading near its 52-week high of $296.72, with a P/E ratio of 59.5x.
The firm expects Veeva’s second-quarter results to potentially exceed expectations, noting that current guidance appears conservative given the company’s business momentum, which remains consistent with the previous quarter. According to InvestingPro data, Veeva maintains a "GREAT" Financial Health score and has demonstrated solid revenue growth of 14.8% over the last twelve months.
Wells Fargo’s price target adjustment reflects a valuation shift to fiscal year 2027 estimates, coming at a time when investor sentiment toward Veeva appears cautious despite the stock’s 38% year-to-date gain compared to the S&P 500’s 9% increase.
The research note highlighted that short interest in Veeva has more than doubled since the beginning of the year to approximately 4.6 million shares, reaching its highest level since 2019, though this represents less than 3% of the company’s float.
Short interest has decreased from its June peak of 5.3 million shares, which Wells Fargo partially attributes to July’s announcement that Merck will maintain its Customer Relationship Management (CRM) relationship with Veeva.
In other recent news, Veeva Systems has settled its ongoing litigation with IQVIA, ending disputes that began in 2017. The settlement includes mutual data access agreements, allowing both companies to provide enhanced products and services to their customers. In a separate development, Boehringer Ingelheim has adopted Veeva’s OpenData and Network solutions across more than 100 countries, aiming to improve customer data accuracy and support artificial intelligence capabilities. Additionally, Veeva Systems secured a new commitment from Merck, becoming the sixth top 20 global pharmaceutical company to transition to Veeva’s Vault platform. Raymond James reiterated its Outperform rating on Veeva Systems following this commitment.
Meanwhile, the Sarah Cannon Research Institute has partnered with Veeva Systems to adopt the Veeva Clinical Platform, aiming to streamline oncology clinical trials across its extensive network. The integration is expected to enhance data flow and collaboration among clinical teams. In other analyst news, Wells Fargo raised its price target for Doximity to $62, citing the rollout of its AI Scribe feature amidst ongoing growth discussions. These developments highlight the dynamic changes and strategic collaborations occurring within the industry.
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