On Friday, Mizuho (NYSE:MFG) Securities demonstrated confidence in Veeva Systems (NYSE:NYSE:VEEV), a cloud-computing company focused on pharmaceutical and life sciences industry applications, by raising its price target on the stock.
The new target is set at $280, increased from the prior target of $275, while the Outperform rating remains unchanged. With a current market capitalization of $37.5 billion and trading near its 52-week high, InvestingPro analysis suggests the stock is fairly valued at current levels.
The upgrade comes on the back of Veeva Systems' robust financial outlook and its recent performance that surpassed expectations. The company's guidance for fiscal year 2025 was raised, showing an anticipated revenue growth improvement from 14% to 15%, and an increase in earnings per share (EPS) from $6.22 to $6.44, indicating a jump from 29% to 33% growth.
InvestingPro data reveals the company maintains excellent financial health with a score of GREAT, supported by strong profitability metrics and consistent revenue growth of 15.29% over the last twelve months.
Veeva Systems' third-quarter results for fiscal year 2025 were particularly strong, with revenues reaching $699 million, which exceeded the guidance range of $682-685 million. The EPS for the same quarter also outperformed the guidance, coming in at $1.75 compared to the expected $1.57-1.58.
The positive results and subsequent guidance raise have led Mizuho to adjust its expectations for Veeva Systems' future financial performance. The firm has increased its EPS forecast for fiscal year 2025 from $6.25 to $6.44, for fiscal year 2026 from $7.00 to $7.13, and for fiscal year 2027 from $7.90 to $8.00.
The price target adjustment to $280 is based on a 35x price-to-earnings (P/E) ratio on the updated calendar year 2026 EPS estimate of $8.00, which has been revised up from the previous estimate of $7.90.
Veeva's consistent performance and raised financial outlook suggest a strong potential for the stock, as reflected in Mizuho's updated price target. Currently trading at a P/E ratio of 60.65, investors seeking deeper insights can access comprehensive valuation metrics and 13 additional ProTips through InvestingPro's detailed research report.
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