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Research Alert: CFRA Maintains Hold Opinion On Shares Of Veeva Systems Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Veeva Systems Inc.
May 31, 2024 8:06 AM

10:55 AM EDT, 05/31/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $36 to $194, reflecting a P/E of 31.5x our FY 2025 EPS estimate, below VEEV's recent historical average to reflect a slower growth trajectory and sales headwinds from a higher interest rate environment, in our view. We lower our FY 2025 (Jan.) EPS estimate by $0.01 to $6.15 and raise our FY 2026 estimate by $0.38 to $6.77. VEEV posted Apr-Q EPS of $1.50 vs. $0.91, beating the $1.42 consensus. Sales of $650M, above the $642M consensus, grew 23.6% Y/Y, supported by 29% growth in subscription sales and 4% growth in services sales. Adjusted operating margin was 40.1%, near our full-year FY 2025 expectation of 39.6%. VEEV lowered the high end of its FY 2025 sales guidance by $30M (~1%) given some delay in deal timing and ongoing financing constraints faced by small and mid-sized customers.

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