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Veeva Systems Inc. (NYSE:VEEV) Stock Analysis: A Look into the Future
Dec 20, 2024 12:12 PM - Andrew Wynn(Last modified: Dec 23, 2024 8:19 AM)
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- 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.
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