On Friday, RBC (TSX:RY) Capital Markets maintained its Outperform rating on Veeva Systems (NYSE:VEEV) and increased the price target to $285 from $275. The revision follows Veeva Systems' recent financial results, which exceeded expectations and prompted the company to raise its full-year revenue, subscription revenue, and billings guidance. According to InvestingPro data, Veeva has demonstrated robust revenue growth of 15.7% over the last twelve months, with the stock currently trading near its 52-week high of $240.68.
Veeva Systems reported a robust performance that saw its shares surge by 8% in after-hours trading. The company's success was anticipated by some following the reaffirmation of guidance at its investor day. The strong Commercial momentum and execution across the board were highlighted, despite the macroeconomic environment remaining stable.
InvestingPro's financial health analysis rates Veeva as "GREAT" with an overall score of 3.45, supported by its strong balance sheet showing more cash than debt. Discover more insights about Veeva's financial strength in the comprehensive Pro Research Report, available with an InvestingPro subscription.
The analyst from RBC Capital expressed satisfaction with the quarter's results and the raised guidance. The report also noted the encouraging progress in ongoing research and development initiatives. Veeva Systems' focus on its horizontal app strategy is another area where updates are expected in future quarters.
The financial metrics indicate that Veeva Systems' shares are currently trading at 30 times the expected enterprise value to free cash flow (EV/FCF) for the calendar year 2025. The new price target of $285 implies a multiple of 35 times EV/FCF, which RBC Capital suggests presents an attractive risk/reward scenario for investors.
InvestingPro data shows the company maintains a P/E ratio of 60.65 and impressive gross profit margins of 73.9%. For deeper valuation insights and 13 additional ProTips, explore the full InvestingPro analysis.
In other recent news, Veeva Systems has witnessed several financial firms adjusting their stock price targets following impressive Q3 results. Needham lifted its target to $270, maintaining a buy rating, while Stifel raised its target to $272, also preserving a buy rating. Truist Securities increased its target to $261, keeping a hold rating, and BofA Securities revised its price target to $290, maintaining a neutral rating. Canaccord Genuity (TSX:CF) adjusted its price target to $270, also maintaining a hold rating.
Veeva Systems reported significant Q3 achievements, including new Vault CRM customers and potential strategic development cloud relationships with major pharmaceutical companies. Veeva's Q3 revenue growth was reported at 15.3%, attributed to its Vault CRM platform's strong performance and strategic partner progress. The company's subscription revenue and billings for the quarter were reported at $581 million and $476 million, respectively.
These are recent developments in the financial analysis of Veeva Systems. The company's growth was noted to be well-balanced across its R&D and Commercial divisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.