Veeva Systems stock price target raised to $68 from $62 at TD Cowen

Investing.com - TD Cowen raised its price target on Veeva Systems (NYSE:VEEV) to $68.00 from $62.00 on Friday, while maintaining a Buy rating on the stock. The company, currently trading at $292.73 with a market cap of $48 billion, has demonstrated strong financial health, earning a "GREAT" rating according to InvestingPro analysis.

The firm expects Veeva’s annual recurring revenue (ARR) to increase 19% year-over-year for the third quarter of fiscal year 2025, which aligns with Street estimates. TD Cowen also anticipates 18% year-over-year growth in net new annual recurring revenue (NNARR) as third-quarter trends remain strong. This growth trajectory builds on the company’s impressive 15.33% revenue growth over the last twelve months.

TD Cowen kept its fiscal year 2025 estimates unchanged, noting it awaits more details regarding management’s anticipated revenue synergies from the integration of SlashNext, which gives Veeva a foothold in the $5.2 billion email security market.

The firm reaffirmed Veeva Systems as its top small and mid-cap (SMID) pick in the sector, supporting the decision to raise the price target.

The price target increase represents approximately 9.7% upside from the previous target of $62.00 that TD Cowen had set for the company.

In other recent news, Veeva Systems announced a long-term partnership with OpenEvidence to develop an AI platform called Open Vista. This collaboration aims to enhance patient access to clinical trials and accelerate drug discovery by leveraging artificial intelligence. Additionally, Veeva Systems plans to introduce AI agents for its commercial applications starting in December 2025, with further rollouts scheduled through 2026 for various research and development applications. In a strategic move, Bristol Myers Squibb has committed to implementing Veeva’s Vault CRM platform to enhance healthcare practitioner engagement using AI technology. Meanwhile, BNP Paribas Exane has reiterated its Outperform rating on Veeva Systems, maintaining a price target of $320.00, highlighting recent customer wins as a positive indicator.

In a related development, Salesforce has added AbbVie as its third top 20 pharmaceutical client for customer relationship management solutions. This addition follows Salesforce’s previous successes with Pfizer and Takeda in the same sector. These recent developments underscore significant advancements and strategic partnerships in the life sciences and pharmaceutical industries.

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