Raymond James lowers its price target on Veeva Systems to $225, down from $275

Raymond James has lowered its price target for Veeva Systems (NYSE: VEEV) to $225 from $275, while maintaining an Outperform rating, according to recent analyst activity. The adjustment follows the company’s fiscal third-quarter results, which showed strong execution and strategic relevance in the pharmaceutical sector, though concerns about commercial growth.

Veeva Systems reported quarterly revenue of $811 million, exceeding the expected $792.75 million, and an EPS of $2.04, surpassing the forecasted $1.95. The company has demonstrated consistent revenue growth, with 15.96% increase over twelve months to $3.08 billion, and maintains a robust financial position with a current ratio of 7.53.

Despite the positive financial performance, Raymond James highlighted potential challenges, including retain only 14 top pharmaceutical companies for its Vault CRM product. Analysts have set price targets ranging from $222 to $380, with consensus suggesting Veeva remains undervalued compared to its Fair Value estimate.

Veeva Systems shares have increased approximately 29% year-to-date prior to the earnings announcement, outperforming the broader market.