On Monday, Citi updated its stance on Veeva Systems (NYSE:VEEV) stock, a cloud-computing company focused on pharmaceutical and life sciences industry applications. The firm's analyst increased the price target on the company's shares to $307 from the previous $281 while maintaining a Buy rating.
The adjustment follows Veeva Systems' recent financial performance, which included a modest yet positive earnings report, surpassing expectations and raising their forecast for FY25 normalized billings by $20 million.
According to InvestingPro data, 18 analysts have revised their earnings upwards, with price targets ranging from $183 to $320, reflecting strong analyst confidence in the company's trajectory.
Veeva Systems has demonstrated growing momentum for its flagship product, Vault CRM, as noted by the analyst. The company's strong performance is reflected in its impressive 73.93% gross profit margin and 15.67% revenue growth over the last twelve months.
Although the company did not provide formal guidance for FY26, the management team expressed continued confidence in the business's trajectory and observed no shifts in the broader macroeconomic environment.
Citi's decision to remain bullish on Veeva Systems is grounded in what it sees as the company's reasonable valuation. The analyst cites Veeva's strategy of platformization within the Life Sciences sector, consistent double-digit growth, and industry-leading profit margins as key factors supporting the investment thesis.
InvestingPro analysis shows the company maintains an excellent financial health score, with particularly strong ratings in profitability and cash flow metrics. Discover more insights and 13 additional ProTips with an InvestingPro subscription.
The increased estimates are based on the higher guidance provided in the recent quarterly report and the financial targets outlined during the company's analyst day. The new price target of $307 reflects a 30 times multiple of the company's expected calendar year 2026/fiscal year 2027 enterprise value to free cash flow (EV/FCF).
This valuation is in line with the analyst's positive outlook on Veeva's financial prospects, supported by the company's strong balance sheet with more cash than debt and a healthy current ratio of 6.36.
In other recent news, Veeva Systems has been the subject of numerous price target adjustments by various financial firms following the release of its impressive Q3 results.
RBC Capital maintained an Outperform rating on Veeva Systems and raised the price target to $285, following the company's recent financial results which exceeded expectations.
This led to Veeva Systems raising its full-year revenue, subscription revenue, and billings guidance. The company reported robust revenue growth of 15.7% over the last twelve months.
Needham, another financial firm, raised its stock price target for Veeva Systems to $270 from $260, reiterating a Buy rating on the stock. The adjustment was prompted by Veeva's strong third-quarter results, which included a top-line beat and the highest non-GAAP operating margin in the company's history at 43.5%.
Stifel, a financial services firm, increased its price target for Veeva Systems from $240.00 to $272.00, maintaining a Buy rating on the stock. Truist Securities raised its price target for Veeva Systems to $261, maintaining a Hold rating on the stock, while BofA Securities increased its price target for Veeva Systems to $290, maintaining a Neutral rating.
These adjustments followed the company's strong Q3 results, with subscription revenue and billings reported at $581 million and $476 million, respectively. These recent developments in the financial analysis of Veeva Systems indicate the company's growth is well-balanced across its R&D and Commercial divisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.