Veeva (VEEV) Receives Boost from TD Cowen, Price Target Raised to $297

TD Cowen has raised Veeva's price target to $297, maintaining a Hold rating, following strong Q2 results driven by robust Crossix operations and R&D subscription growth. Veeva's financial health is underscored by its revenue growth and strong profitability metrics, with a 13.7% YoY growth rate and operating margin of 26.97%. However, investors should note insider selling activity and a high price-to-book ratio.

Veeva Systems (VEEV) has reported robust financial performance for the second quarter of 2025, leading to a series of price target revisions by major investment firms. The company's strong quarterly results have been driven by significant growth in revenue and earnings per share, as well as strategic initiatives that position it as a leader in the life sciences cloud solutions sector.

Key Financial Highlights:
- Revenue grew by 16.7% year-over-year (YoY) to $789.08 million [3].
- Non-GAAP earnings per share (EPS) increased by 22.8% YoY to $1.99 [3].
- Subscription Services, which accounted for 83.5% of total revenue, grew by 17.4% YoY to $659.18 million [3].
- The Professional Services and Other segment, which delivered a 9.7% beat and a 13.1% YoY revenue increase, highlighted operational efficiency gains with a non-GAAP gross margin of 33.4% [3].

Price Target Revisions:
- Truist raised its price target on Veeva to $275 from $268, maintaining a Hold rating [1].
- Baird raised its price target to $314 from $310, maintaining an Outperform rating [2].
- TD Cowen raised its price target to $297, maintaining a Hold rating [Writing Topic].

Market Positioning and Strategic Initiatives:
Veeva's competitive advantage lies in its vertical specialization, platform independence, and AI-driven differentiation. The company's Vault platform and AI roadmap position it to capture 56% of pharma executives' multimodal data priorities by 2025 [3]. This focus on industry-specific innovation creates a moat that horizontal players struggle to breach.

Investment Implications:
Veeva's Q2 results and strategic execution validate its long-term growth story. The company's revenue guidance of $3.134–$3.14 billion for 2025, coupled with a 24.7% year-over-year increase in non-GAAP net income, suggests strong margin expansion and operational leverage. However, investors should note insider selling activity and a high price-to-book ratio.

References:
[1] https://www.tipranks.com/news/the-fly/veeva-price-target-raised-to-275-from-268-at-truist-thefly
[2] https://www.investing.com/news/analyst-ratings/veeva-systems-stock-price-target-raised-to-314-by-baird-on-strong-outlook-93CH-4213745
[3] https://www.ainvest.com/news/veeva-systems-q2-outperformance-glimpse-sustained-growth-margin-resilience-2508/