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Investing.com - Piper Sandler raised its price target on Veeva Systems (NYSE:VEEV) to $355.00 from $325.00 on Thursday, while maintaining an Overweight rating on the stock. The company, currently valued at $45.74 billion, has shown impressive momentum with a 47% return over the past year. According to InvestingPro data, Veeva maintains a strong financial position with more cash than debt on its balance sheet.
The price target increase follows Veeva’s strong quarterly performance, which included a $22 million revenue beat, approximately 3% above the midpoint of the company’s guidance. Veeva also raised its full-year guidance by $42 million.
Piper Sandler noted that Veeva’s visibility continues to improve into the second half of the year, driven by robust new contract and renewal activity. The firm highlighted a mix shift toward R&D subscription revenue, which now represents 53% of sales.
R&D growth accelerated slightly to 21.5%, compared to 20.8% in the previous period, supporting Piper Sandler’s confidence that Veeva can sustain a "Rule of 50" business model well into the future.
The resolution of Veeva’s dispute with IQVIA could potentially unlock additional growth, as IQVIA transitions from competitor to partner for the first time in a decade, according to the research note.
In other recent news, Veeva Systems has reported strong fiscal second-quarter results, with revenue reaching $789.1 million, marking a 17% year-over-year increase and surpassing expectations of approximately $768 million. Earnings per share were $1.99, exceeding the consensus estimate of $1.90. The company’s adjusted operating income also showed a notable 26% year-over-year increase, reaching $352.6 million. Following these results, several firms have adjusted their price targets for Veeva Systems. BTIG and Raymond James both raised their price targets to $340, maintaining a Buy and Outperform rating, respectively. Stifel increased its target to $320, citing revenue and earnings growth that exceeded expectations. Evercore ISI set a new target of $295, while TD Cowen raised its target to $297, both acknowledging the company’s solid performance. These developments reflect Veeva’s progress in key areas, including significant wins among top pharmaceutical companies.
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