Veeva Systems Inc. (NYSE:VEEV) Stock Analysis: A Look into the Future
- Jeff Garro from Stephens sets a price target of $280 for Veeva Systems Inc. (NYSE:VEEV), indicating a potential upside of 27.46%.
- Veeva's sales growth is stabilizing in the mid-teens, with EBITDA margins expected to exceed 40%.
- The company's strategy to expand into new markets could enhance its valuation multiple, currently below its 10-year average.
Veeva Systems Inc. (NYSE:VEEV) is a prominent player in the cloud-based software industry, primarily serving the life sciences sector. The company offers solutions that help organizations manage their content and data efficiently. Veeva's competitors include companies like Oracle and SAP, which also provide enterprise software solutions.
On December 19, 2024, Jeff Garro from Stephens set a price target of $280 for VEEV, suggesting a potential upside of 27.46% from its current price of $219.67. Garro initiated coverage with an Overweight rating, indicating a positive outlook on the stock's future performance.
Veeva's sales growth is stabilizing in the mid-teens, and the company is returning to EBITDA margins exceeding 40%, as highlighted by Stephens. This strong financial performance is a key factor in the bullish outlook. The company's strategy to expand into new markets could further enhance its valuation multiple, which is currently below its 10-year average.
The stock has shown strong performance over the past six months, partly due to positive feedback on the Vault transition. Despite a recent decrease of $1.87 or -0.84%, VEEV's market capitalization remains robust at approximately $35.66 billion. The stock has fluctuated between $218.11 and $225.97 today, with a trading volume of 1,103,415 shares.
Over the past year, VEEV has experienced a high of $258.93 and a low of $170.25. This range reflects the stock's volatility and potential for growth. Stephens believes that Veeva's strategic initiatives could elevate its valuation back towards its historical average, supporting the optimistic price target of $280.
| Symbol | Price | %chg |
|---|---|---|
| 2413.T | 1431 | -1.68 |
| IKS.NS | 1917.95 | -0.44 |
| IKS.BO | 1915.2 | -1.49 |
| 4483.T | 3776 | 0.37 |
Veeva Systems Inc. (NYSE:VEEV) Quarterly Earnings Preview
- Earnings per share (EPS) is estimated to be $1.58, marking a 17.9% increase year-over-year.
- Projected revenue of $688.44 million, reflecting an 11% year-over-year growth.
- Veeva Systems showcases a strong financial position with a debt-to-equity ratio of just 0.002 and a current ratio of about 5.01.
Veeva Systems Inc. (NYSE:VEEV) is a prominent player in the cloud-based software industry, primarily serving the life sciences sector. The company provides solutions for customer relationship management, content management, and data analytics. Veeva's competitors include companies like Salesforce and Oracle, which also offer cloud-based solutions across various industries.
On December 4, 2024, VEEV is set to release its quarterly earnings, with Wall Street analysts estimating an earnings per share (EPS) of $1.58. This represents a significant 17.9% increase from the same period last year, as highlighted by Zacks Investment Research. The revenue is projected to be around $688.44 million, reflecting an 11% year-over-year growth.
The stability in the consensus EPS estimate over the past month suggests that analysts have maintained their initial projections. This stability is crucial as empirical research shows a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock. Veeva Systems has a history of delivering impressive earnings surprises, which could lead to an earnings beat in the upcoming report.
Veeva Systems' financial metrics indicate a strong market valuation. The company has a price-to-earnings (P/E) ratio of approximately 59.78, meaning investors are willing to pay nearly 60 times the company's earnings over the past twelve months. The price-to-sales ratio is about 14.31, and the enterprise value to sales ratio is approximately 13.88, reflecting the company's valuation in relation to its revenue.
Veeva Systems maintains a robust financial position with minimal debt, as indicated by a debt-to-equity ratio of just 0.002. The company also showcases strong liquidity, with a current ratio of about 5.01, meaning it has more than five times the current assets needed to cover its current liabilities. This financial strength positions Veeva well for future growth and stability.
Citi Raises Veeva Systems Price Target to $273 Ahead of Earnings
Citi analysts raised their price target on Veeva Systems (NYSE:VEEV) from $256 to $273, while maintaining a Buy rating, ahead of the company’s upcoming Q2/25 earnings, scheduled to be released on Wednesday.
The increased optimism ahead results stems from positive trends in Life Sciences demand and resilient demand across Veeva's product suite, as indicated by partner conversations.
Veeva's strong pipeline visibility for the second half of the year supports the analyst's outlook, which is considered conservative. The analysts expect a slight beat on billings and revenue, with steady guidance as new CFO Brian Van Wagener settles into his role. Despite no changes in estimates, the price target adjustment reflects continued confidence in Veeva's double-digit growth prospects and margin improvement potential.
Veeva Systems Stock Surges 17% on Q1 Beat
Veeva Systems (NYSE:VEEV) shares jumped more than 17% intra-day today after the company reported its Q1 results, with EPS of $0.91 coming in better than the Street estimate of $0.79. Revenue was $526.3 million, beating the Street estimate of $515.86 million.
Management reiterated that demand, and underlying KPIs (pipeline, win-rates, collections) remain consistent despite macro uncertainties. Management expects early customers to be live on Vault CRM and the Compass suite by next year.
For Q2/24, the company expects EPS to be in the range of $1.12-$1.13, compared to the Street estimate of $1.07, and revenue in the range of $580-$582 million, compared to the Street estimate of $580.31 million.
For the full year, the company expects EPS of $4.59, compared to the Street’s $4.32, and revenue of $2.36-$2.37 billion, compared to the Street’s $2.36 billion.
Veeva Systems Inc. Shares Closed 5% Lower Despite Strong Q2 Beat
Veeva Systems Inc. (NYSE:VEEV) shares closed more than 5% lower today despite the company’s reported Q2 results, which were above the Street estimates. The company delivered quarterly $0.94 EPS, beating the consensus estimate of $0.87, and revenue of $455.6 million (up 29% year-over-year), versus the consensus estimate of $451.93 million.
The company projects Q3 revenue to range from $464 million to $466 million, which is better than the Street estimate of $456.94 million.
For the full 2022-year the management of the company expects an EPS of $3.57, better than the consensus estimate of $3.50, and revenue of $1.83 billion-$1.835 billion, compared to the consensus of $1.82 billion.
