BofA update shows where active managers are putting money
Investing.com - BTIG raised its price target on Veeva Systems (NYSE:VEEV) to $340 from $335 while maintaining a Buy rating following the company’s strong fiscal second-quarter results. According to InvestingPro data, Veeva’s stock has delivered an impressive 39.64% return year-to-date, trading near its 52-week high of $296.72.
Veeva reported revenue of $789.1 million for the quarter, representing 17% year-over-year growth and exceeding both BTIG and consensus estimates of $769.9 million and $768 million, respectively. The company’s adjusted operating income reached $352.6 million, up 26% year-over-year, surpassing expectations. InvestingPro analysis shows Veeva maintains excellent financial health with a "GREAT" overall score, supported by a robust 75.5% gross profit margin and strong cash flow metrics.
Following these results, Veeva raised its fiscal 2026 guidance across all metrics, including revenue, adjusted operating income, adjusted EPS, and billings. Subscription revenue grew 17% to $659.2 million, while services revenue increased 13% to $129.9 million. The company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 4.6x, indicating excellent liquidity position.
BTIG noted that Veeva "continues to dominate both Commercial and R&D Technology solutions within the bio-pharma industry." The firm highlighted Veeva’s agreement with IQVIA (NYSE:IQV), which allows legacy IMS data to be used within Veeva’s suite, with IQVIA apparently no longer competing in the CRM space.
The research firm also pointed to Veeva now serving all 20 of the top 20 biopharmaceutical companies for eTMF (electronic Trial Master File), which BTIG views as evidence that Veeva "is the most trusted R&D technology platform in the market."
In other recent news, Veeva Systems reported impressive financial results for the second quarter of fiscal year 2025. The company exceeded market expectations with an earnings per share of $1.99, surpassing the forecast of $1.90. Revenue also outperformed predictions, reaching $789 million compared to the anticipated $768.26 million. Additionally, Veeva Systems experienced a 17% increase in revenue year-over-year, surpassing consensus estimates by 3%.
Baird responded to these positive results by raising its price target for Veeva Systems to $314, up from $310, while maintaining an Outperform rating. The company also reported a 10% year-over-year growth in billings, aligning with expectations. These developments reflect a strong financial performance for Veeva Systems, drawing attention from investors and analysts alike.
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