Analyst Craig Hettenbach from Morgan Stanley maintained a Sell rating on Veeva Systems and keeping the price target at $210.00.
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Craig Hettenbach’s rating is based on several factors impacting Veeva Systems. Despite the company’s solid performance, aided by a significant contribution from Crossix, there are concerns about the sustainability of this growth. The potential for macroeconomic pressures to affect customer sales and renewals is a key consideration, especially as Veeva approaches a quarter where a large portion of annual billings is concentrated.
Another factor influencing the Sell rating is the uncertainty surrounding the services segment, which has shown no growth previously and is projected to grow modestly. Additionally, the broader negative sentiment in the software sector due to AI-related disruptions poses a risk to Veeva’s CRM business. These elements combined with the current balanced risk/reward scenario contribute to the cautious outlook on Veeva’s stock.