Stifel Raises Price Target on Veeva Systems (VEEV) to $43 Following 2Q Beat and Raise

Stifel reiterated a Buy rating on Veeva Systems (NYSE: VEEV), and raised the price target to $43.00 (from $40.00), following the company's 2Q earnings report. Total revenue of $131.3mn came in ahead of consensus of $126.5mn. EPS of $0.15 beat Street expectations of $0.13. Management issued 3Q17 guidance of $134.5-$136.0mn (Street $133.1mn) and $0.15-$0.16 (Street at $0.14).

Analyst Tom Roderick commented, "On August 30th, after the market close, Veeva delivered F2Q17 financial results that handily beat Street estimates for the quarter. The Vault story - which drove non-CRM revenues to 35% of total revenues in the quarter - continues to play out ahead of expectations, as numerous Vault lines are finding success at both installed and new customers. Meanwhile, the Commercial Cloud, anchored by CRM and PromoMats, but also demonstrating success with newer offerings like Events and Align, is emerging as a legitimate suite sale, boosting ASPs. Veeva somehow continues to exceed heightened expectations, and we believe investors are finally realizing that the power of the Vault story has the potential to exceed CRM at some point. We are maintaining our Buy rating while raising our Target Price to $43 from $40."

For an analyst ratings summary and ratings history on Veeva Systems click here. For more ratings news on Veeva Systems click here.

Shares of Veeva Systems closed at $37.64 yesterday.

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