On Friday, Barclays (LON:BARC) reiterated its Overweight rating on Veeva Systems (NYSE:VEEV) with a steady price target of $240.00. The firm's analysis suggests a positive outlook for the company leading into its November 7th Investor Day, despite not anticipating a preliminary financial guide for FY26 until the third-quarter earnings call, which is expected in late November or early December.
Veeva Systems, known for its cloud-based software for the global life sciences industry, concluded its third quarter of 2025 on October 31. Analysts from Barclays have expressed optimism regarding Veeva's billing prospects, citing a modest normalized growth rate of approximately 8% and the increasing traction of Veeva CDMS contracts.
While some market participants may have expected Veeva to unveil a new long-term (LT) financial target extending to 2030 during the upcoming Investor Day, Barclays analysts believe this is unlikely.
They point out that the company's new Chief Financial Officer will have been in the position for only two months by that time and that historically, Veeva has set new financial targets after achieving previous ones. The firm reached its prior target of $1 billion before setting the current $3 billion goal, suggesting a new LT model might be more probable next year.
Amid concerns of intensifying competition from rivals like CRM in 2025, analysts suggest that Veeva Systems could take measures to bolster investor confidence. Such actions might include committing to a 10% multi-year revenue growth or announcing a new share buyback program. These potential moves could serve to reassure stakeholders of the company's growth trajectory and market position.
In other recent news, Veeva Systems has announced a strategic partnership with Walgreens, aiming to improve patient outcomes by leveraging Veeva's Data Cloud products and services. The collaboration positions Walgreens as a key independent partner for life sciences companies.
Additionally, Veeva Systems has 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 welcomed Brian Van Wagener as their new Chief Financial Officer.
Veeva Systems has expanded its clinical trial platform, Veeva Site Connect, introducing additional features and an optimized user interface. Analyst firms including Oppenheimer, Truist Securities, and KeyBanc Capital Markets have held positive ratings on Veeva Systems, with Oppenheimer maintaining an Outperform rating and a price target of $230.00.
InvestingPro Insights
Adding to Barclays' optimistic outlook on Veeva Systems (NYSE:VEEV), recent data from InvestingPro provides further context for investors. As of the latest available data, Veeva boasts a market capitalization of $34.43 billion, reflecting its significant presence in the cloud-based software market for life sciences.
InvestingPro Tips highlight that Veeva holds more cash than debt on its balance sheet, indicating a strong financial position that aligns with the company's potential for strategic moves such as share buybacks, as suggested by Barclays analysts. Additionally, Veeva's liquid assets exceed short-term obligations, further underscoring its financial stability.
The company's revenue growth of 15.29% over the last twelve months supports Barclays' positive view on Veeva's billing prospects. Moreover, with a gross profit margin of 73.35%, Veeva demonstrates robust profitability in its core operations.
It's worth noting that Veeva is trading at a P/E ratio of 56.06, which InvestingPro Tips characterize as a high earnings multiple. This valuation could reflect market expectations for continued growth, aligning with Barclays' Overweight rating and $240 price target.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Veeva Systems, providing deeper insights into the company's financial health and market position.
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