In a report released today, Craig Hettenbach from Morgan Stanley maintained a Sell rating on Veeva Systems, with a price target of $222.00.
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Craig Hettenbach has given his Sell rating due to a combination of factors impacting Veeva Systems. The primary concern revolves around the company’s performance in the CRM market, particularly its competition with Salesforce. Veeva’s management indicated that their win rate among the top 20 pharmaceutical companies is below expectations, which has shifted focus back to the CRM debate. This is significant as Salesforce is making strides in the Life Sciences sector, potentially winning over major clients like Novartis, JNJ, Lilly, and Sanofi.
Moreover, while Veeva has shown strength in areas like Crossix and Services, there are still uncertainties regarding its future growth, particularly with the integration of AI and the overall demand in the pharmaceutical sector. The company’s ambitious revenue target of $6 billion by 2030 leaves little room for error, given the competitive landscape and potential shifts in market share. Despite solid earnings and revenue guidance, these strategic challenges and competitive pressures underpin Hettenbach’s cautious outlook on Veeva’s stock.
According to TipRanks, Hettenbach is a 3-star analyst with an average return of 3.1% and a 53.48% success rate.