Analyst Craig Hettenbach of Morgan Stanley maintained a Sell rating on Veeva Systems (VEEV – Research Report), boosting the price target to $201.00.
Craig Hettenbach has given his Sell rating due to a combination of factors affecting Veeva Systems. Despite the company surpassing expectations in Q4 with a 17% increase in billings and a 14% rise in revenue, the guidance for FY26 presented a mixed outlook. While the billings guidance was slightly above expectations, the revenue guidance fell short, partly due to foreign exchange impacts. Additionally, the company’s ambitious 2030 revenue target of $6 billion implies a growth acceleration that seems challenging to achieve based on current trends.
Another concern is the potential for share loss in the CRM segment, as there is an anticipated increase in RFP activity. This is further highlighted by upcoming competitive events, such as a webinar by Salesforce and Accenture focusing on AI advancements. Although Veeva has shown strong operating margins and growth in certain segments, these positive aspects are overshadowed by the uncertainties and competitive pressures in the market, leading to the Sell rating.