On Friday, BofA Securities updated its stance on Veeva Systems (NYSE:VEEV), a cloud-computing company focused on pharmaceutical and life sciences industry applications, by increasing the price target to $290.00, up from the previous $280.00. The firm maintained a Neutral rating on the stock despite the target adjustment. With a market capitalization of $37.5 billion and trading near its 52-week high, InvestingPro data shows the stock is currently fairly valued.
The revision followed Veeva Systems' third-quarter earnings report, which revealed a robust performance. The company's subscription revenue and billings for the quarter were $581 million and $476 million, respectively. These figures represent a year-over-year growth of 17% for subscription revenue and 14% for billings, surpassing BofA Securities' estimates of $571 million and $439 million. According to InvestingPro, the company maintains excellent financial health with a GREAT overall score and an impressive gross profit margin of 73.35%.
Veeva Systems' growth was noted to be well-balanced across its R&D and Commercial divisions. The Commercial segment, in particular, saw an 11% growth, which was above the firm's projection of 12%. This growth was attributed to strong performance in Crossix and Commercial content.
However, there was a slight deceleration observed in the business compared to the previous quarter, with a 1% decrease in growth from Q2. Additionally, the firm's commentary indicated that results from the core Customer Relationship Management (CRM) offerings are expected to be largely in line with previous performances, without significant deviations.
In other recent news, Veeva Systems has been the focus of several analysts' reports. Barclays (LON:BARC) raised its target for Veeva Systems to $275, maintaining an Overweight rating, following the company's commendable third-quarter performance. Canaccord Genuity also adjusted its price target for Veeva Systems to $270, while maintaining a Hold rating on the stock.
Mizuho (NYSE:MFG) Securities raised its price target on Veeva Systems to $280, maintaining an Outperform rating, based on the company's robust financial outlook and recent performance. Jefferies reiterated its Buy rating and $280.00 price target for Veeva Systems, highlighting the company's strong strategic partner progress. Lastly, Raymond (NS:RYMD) James raised its target for Veeva Systems to $300, underscoring the company as a long-term investment.
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