JPM upgrades Veeva Systems on growth potential in life sciences software

Published 08/09/2025, 15:28
© Reuters.

Investing.com -- JP Morgan upgraded Veeva Systems to Overweight from Neutral, pointing to the software provider’s expanding role in the life sciences industry and AI.

Veeva makes cloud-based tools that help pharmaceutical and biotech companies manage research, sales, data storage and regulatory compliance.

The company has captured only a fraction of its potential market, leaving room for further expansion.

The analysts said Veeva’s growth will be fueled by selling more services to its existing base of nearly 1500 clients and by benefiting from a broader industry shift toward digital tools.

The company recent partnered with IQVIA which is a healthcare data provider, with a rollout of “Agentic AI,” designed to improve efficiency for drugmakers.

“Despite fierce competition, migration of customers to Vault CRM is going well, while introduction of Agentic AI is supporting greater industry efficiency,” the analysts wrote.

They added that Veeva’s broad platform approach, which spans multiple functions across the drug development cycle, sets it apart from rivals.

JPM also pointed to Veeva’s strong financial position, with a large cash balance that could support further investment or acquisitions.

The brokerage raised its price target to $330 from $290, saying Veeva’s long-term growth prospects and ability to expand profit margins warrant a higher valuation.

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