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Analyst projects steady growth for Veeva stock, Outperform rating reaffirmed

EditorAhmed Abdulazez Abdulkadir
Published 10/30/2024, 08:09 AM
VEEV
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On Wednesday, Oppenheimer reaffirmed its Outperform rating on shares of Veeva Systems (NYSE:VEEV), maintaining a price target of $230.00. The firm anticipates that during Veeva's upcoming Analyst Day on November 7, the company will present new long-term targets, continuing its trend of outlining future goals a year in advance.

Investors are expecting Veeva to forecast a compound annual growth rate (CAGR) in the low double-digits through to 2030, with a minimum EBIT margin of high-30%. This prediction comes despite recent investor discussions suggesting that Veeva might delay announcing new long-term targets until next year, as the company has yet to formally surpass $3 billion in revenue—a milestone it had achieved in previous years before setting such targets.

The expectation is that Veeva will confirm its fiscal year 2025 guidance and may also release preliminary third-quarter results. However, the introduction of fiscal year 2026 guidance is not anticipated at this time.

The Analyst Day is also expected to draw attention to Veeva's Vault CRM roadmap, including details on migration timelines and how the company positions itself against competitors. Investors are also interested in updates on Veeva's Clinical Data Management System/Electronic Data Capture (CDMS/EDC), Data Cloud/Compass services, and advancements in artificial intelligence.

In other recent news, Veeva Systems reported a 15% year-over-year increase in total revenue, reaching $676.2 million, and an earnings per share of $1.62. The company also formed a strategic partnership with Walgreens to enhance patient outcomes using Veeva's Data Cloud products and services.

Analysts from Baird and Barclays maintained positive ratings on Veeva Systems, despite a price target cut from Baird due to concerns over research and development spending patterns.

In addition, Veeva Systems retained its Outperform rating from Oppenheimer, despite potential competition from Salesforce (NYSE:CRM)'s AI-focused approach in the CRM space. Furthermore, the company welcomed Brian Van Wagener as their new Chief Financial Officer and expanded its clinical trial platform, Veeva Site Connect.

InvestingPro Insights

To complement Oppenheimer's bullish outlook on Veeva Systems, InvestingPro data provides additional context for investors. Veeva's market capitalization stands at $34.63 billion, reflecting its significant presence in the healthcare technology sector. The company's revenue for the last twelve months as of Q2 2025 was $2.57 billion, with a robust revenue growth of 15.29% over the same period. This growth aligns with the expectations for Veeva to surpass the $3 billion revenue milestone soon.

InvestingPro Tips highlight Veeva's strong financial position, noting that the company "holds more cash than debt on its balance sheet" and "liquid assets exceed short-term obligations." These factors support Veeva's ability to invest in growth initiatives and navigate potential economic uncertainties. Additionally, the tip that Veeva "has been profitable over the last twelve months" underscores the company's financial health, which is crucial as it approaches its Analyst Day and sets new long-term targets.

However, investors should be aware that Veeva is "trading at a high earnings multiple" and "at a high P/E ratio relative to near-term earnings growth." With a P/E ratio of 56.14, the stock may be considered expensive by some metrics. This valuation could be factored into Oppenheimer's price target and may influence how the market reacts to Veeva's upcoming announcements.

For those seeking a deeper dive into Veeva's financials and market position, InvestingPro offers 11 additional tips, providing a comprehensive view of the company's strengths and potential areas of concern.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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