Wells Fargo analyst Stan Berenshteyn maintained a Buy rating on Veeva Systems (VEEV – Research Report) today and set a price target of $285.00.
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Stan Berenshteyn has given his Buy rating due to a combination of factors that suggest a positive outlook for Veeva Systems. Despite some macroeconomic uncertainties and policy concerns, the company is set up well for the first quarter, with billings guidance that appears achievable. The increase in small and medium business commercial activity is a positive indicator for the company’s performance.
Furthermore, long-term margin improvements are expected to outpace market consensus, driven by high incremental gross margins from Veeva’s subscription business and the reduction of Salesforce-related licensing fees. Although there are risks associated with biopharma spending and competitive pressures, particularly from Salesforce, the overall outlook remains favorable with potential EBIT progression over the next two years.
In another report released on May 23, Raymond James also reiterated a Buy rating on the stock with a $285.00 price target.