Evercore ISI maintains Veeva Systems' In-Line rating, raises PT to $295.

Evercore ISI maintains Veeva Systems' In-Line rating, raises PT to $295.

Evercore ISI has raised its price target on Veeva Systems (NYSE:VEEV) to $295.00 from $285.00, while maintaining an "In Line" rating following the company’s quarterly earnings report. The stock is currently trading near its 52-week high of $296.72, with InvestingPro data indicating the stock is slightly overvalued at current levels [1].

Veeva Systems reported total revenue of $789.1 million, representing a 17% year-over-year growth and exceeding expectations of approximately $768 million. Earnings per share came in at $1.99, ahead of the consensus estimate of $1.90. However, billings of $666 million fell slightly short of the $666.5 million consensus. The company maintains impressive profitability with a 75.5% gross margin and strong return metrics, earning it a "GREAT" financial health score from InvestingPro [1].

The company raised its full-year fiscal 2026 guidance across all metrics. Total revenue guidance was increased by $40 million to a range of $3.134-$3.140 billion. Operating income guidance was raised by $28 million to $1.388 billion, while normalized billings guidance increased by $35 million to $3.355 billion. This outlook builds on the company’s strong track record, with revenue growing at 14.78% over the last twelve months [1].

Crossix was identified as the key driver of commercial solutions growth, with revenue up 13% year-over-year to $307.5 million. The company’s partnership with IQVIA was highlighted as bringing multiple benefits that should unfold over time, particularly enhancing Veeva Nitro’s value in commercial analytics [1].

Veeva has secured verbal commitments from two additional top-20 biopharma companies, bringing the total to 9 of the top 20, while its CRM product secured another verbal commitment, bringing that total to 3. Vault migrations are reportedly progressing well, with two top-20 biopharmas now live [1].

In other recent news, Veeva Systems reported impressive financial results for the fiscal second quarter, exceeding market expectations. The company achieved revenue of $789.1 million, marking a 17% increase year-over-year and surpassing consensus estimates of $768 million. Adjusted operating income reached $352.6 million, a 26% rise from the previous year, also beating expectations. Analysts responded positively to these results, with BTIG, Raymond James, and Baird adjusting their price targets upwards [1].

References:
[1] https://www.investing.com/news/analyst-ratings/veeva-systems-stock-price-target-raised-to-295-by-evercore-isi-93CH-4214407