Here’s Why Analysts Are Raising Their Price Targets on Veeva Stock (VEEV)

Software company Veeva Systems (VEEV) posted very strong first-quarter results that exceeded expectations, which led several major firms to raise their price targets. The company also raised its full-year forecast, giving investors more confidence in its long-term growth. Analysts were especially encouraged by Veeva’s healthy subscription growth and strong billings. Indeed, the quarter was described by Scotiabank as the best Q1 Veeva has ever had, and highlighted its resilience and ability to execute in today’s uncertain economic environment.

RBC Capital, led by Rishi Jaluria, was especially bullish, raising its price target from $285 to $330 and keeping an Outperform rating on the stock. The firm said that Veeva performed well in key areas like its Commercial segment and Vault CRM migrations. RBC believes that these results show strong leadership and a well-executed strategy. The firm also emphasized that Veeva is managing to grow steadily despite broader economic challenges, which continues to give them confidence in the company’s management team and outlook. Interestingly, though, while other firms were positive, they were slightly more cautious.

For example, Truist, led by Jailendra Singh, raised its price target to $230 from $217 but maintained a Hold rating. Still, the firm said that even though Veeva is facing some uncertainty, management expects the current macroeconomic environment to hold steady and allow deals, contract renewals, and ongoing projects to continue as planned. Separately, Scotiabank’s Allan Verkhovski, who raised his price target from $245 to $270, also praised Veeva’s strong quarter but chose to keep a Sector Perform rating. He noted that while he was optimistic before the results, much of the future opportunity now seems already reflected in the current stock price.

Is Veeva a Good Stock to Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on VEEV stock based on 14 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average VEEV price target of $274.15 per share implies 1.75% downside risk.

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