Morgan Stanley Upgrades Veeva to Equal Weight Amid Market Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
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Should l Buy VEEV?
Source: seekingalpha
- Rating Upgrade: Morgan Stanley upgraded Veeva Systems (VEEV) from Underweight to Equal Weight, indicating that the company better reflects market risks after a recent sell-off, with the stock down 45% since October.
- Market Concerns: Analyst Craig Hettenbach noted that Veeva has lost four of the top ten pharma companies in the CRM market, raising concerns over AI-related disruptions, even as VEEV trades at a 10-year low on an EV/FCF basis.
- Financial Position: Veeva holds $6.6 billion in cash, and the analyst views the company's inaugural share repurchase program announced in January as a potential support for the stock, despite ongoing risks from CRM market share loss.
- Price Target Reduction: Hettenbach lowered the price target for Veeva from $222 to $205, reflecting multiple compressions in the software sector, and projected that VEEV would provide in-line guidance with slight upside for Q4 2025 when it releases quarterly financials on March 4.
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Analyst Views on VEEV
Wall Street analysts forecast VEEV stock price to rise
23 Analyst Rating
16 Buy
6 Hold
1 Sell
Moderate Buy
Current: 176.820
Low
222.00
Averages
317.10
High
380.00
Current: 176.820
Low
222.00
Averages
317.10
High
380.00
About VEEV
Veeva Systems Inc. is a provider of cloud solutions for the global life sciences industry. It offers span cloud software, data, and business consulting and is designed to meet the needs of its customers and the strategic business functions from research and development (R&D) through commercialization. Its four product categories include Veeva Development Cloud, Veeva Quality Cloud, Veeva Commercial Cloud, and Veeva Data Cloud. Veeva Development Cloud includes application suites for the clinical, regulatory, and safety functions of life sciences companies, all built on its Veeva Vault platform. Veeva Quality Cloud unifies applications, processes, and partners across content management, training, quality management, assurance, and control lab solutions on the Veeva Vault platform. Veeva Commercial Cloud is a product category comprised of software and analytics solutions. Veeva Data Cloud is a data platform comprised of connected reference data, deep data, and transaction data.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Morgan Stanley Upgrades Veeva to Equal Weight Amid Market Concerns
- Rating Upgrade: Morgan Stanley upgraded Veeva Systems (VEEV) from Underweight to Equal Weight, indicating that the company better reflects market risks after a recent sell-off, with the stock down 45% since October.
- Market Concerns: Analyst Craig Hettenbach noted that Veeva has lost four of the top ten pharma companies in the CRM market, raising concerns over AI-related disruptions, even as VEEV trades at a 10-year low on an EV/FCF basis.
- Financial Position: Veeva holds $6.6 billion in cash, and the analyst views the company's inaugural share repurchase program announced in January as a potential support for the stock, despite ongoing risks from CRM market share loss.
- Price Target Reduction: Hettenbach lowered the price target for Veeva from $222 to $205, reflecting multiple compressions in the software sector, and projected that VEEV would provide in-line guidance with slight upside for Q4 2025 when it releases quarterly financials on March 4.
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Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, including upgrades, downgrades, and initiations, reflecting varying market perspectives that could influence investor decisions.
- Market Reaction Expectations: Changes in analyst ratings may lead to price volatility in the respective stocks, prompting investors to monitor these shifts to assess potential investment opportunities and risks.
- Impact of Rating Changes: Upgrades typically boost investor confidence, potentially driving stock prices higher, while downgrades may trigger sell-offs, affecting the company's market performance.
- Comprehensive Rating View: For a complete overview of all analyst rating changes, investors can visit the analyst ratings page to gain deeper market insights and data support.
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- Market Rebound Expectations: JPMorgan believes that while the market's outlook on AI disruption in the software sector is overly pessimistic, certain software companies are demonstrating greater resilience, potentially providing rebound opportunities for investors, especially given the current overly bearish sentiment.
- Extreme Price Volatility: Analysts point out that the extreme price action in software stocks has led to unrealistic expectations regarding AI disruption, which may prompt a rotation back into higher-quality companies, thereby improving portfolio performance.
- AI Profitability Gains: Companies in the S&P 500 that have adopted AI have seen net margins expand by approximately 2 to 3 percentage points more than their peers, indicating that AI technology is already delivering productivity gains and reflecting that corporate adoption is enhancing profitability.
- ETF Performance Decline: The State Street SPDR S&P Software & Services ETF (NYSE:XSW) is down 20.58% year-to-date, illustrating the overall pessimistic sentiment towards the software sector, despite some companies potentially benefiting from AI infrastructure demand.
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Investment Perspective: Analysts at J.P. Morgan view this downturn as a buying opportunity and have identified several AI-resistant companies, including Microsoft and CrowdStrike.
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Market Impact: The software sector has experienced a significant decline, losing approximately $2 trillion due to concerns over potential disruptions from artificial intelligence technology.
Investment Perspective: Analysts at J.P. Morgan view this downturn as a potential buying opportunity and have identified a list of companies that are resistant to AI-related disruptions.
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Veeva Link Enhances Customer Engagement for Biopharma
- Standardization of Customer Engagement: Veeva Link Key People has been adopted as a standard by 13 of the top 20 biopharma companies, enhancing customer engagement and providing data support globally, which is expected to significantly improve customer relationships and market responsiveness.
- New Client Growth: In the past year, Veeva Link Key People added 38 new clients, including three of the world's leading biopharma companies, indicating widespread recognition and demand in the industry, further solidifying Veeva's market position.
- Data-Driven Decision Making: Bayer AG's VP stated that the integration of Link Key People data has become central to their decision-making process, enhancing precision marketing capabilities and facilitating interactions with healthcare professionals, ultimately aiding in patient care improvement.
- Technological Innovations: Veeva enhances customer interaction experiences through innovations such as AI-driven summaries, personalized notifications, and new data sources, while the Link Direct API provides rapid data access, further driving digital transformation in the biopharma industry.
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Morgan Stanley Upgrades Veeva to Equal Weight Amid Market Concerns
- Rating Upgrade: Morgan Stanley upgraded Veeva Systems (VEEV) from Underweight to Equal Weight, indicating that the company better reflects market risks after a recent sell-off, with the stock down 45% since October.
- Market Concerns: Analyst Craig Hettenbach noted that Veeva has lost four of the top ten pharma companies in the CRM market, raising concerns over AI-related disruptions, even as VEEV trades at a 10-year low on an EV/FCF basis.
- Financial Position: Veeva holds $6.6 billion in cash, and the analyst views the company's inaugural share repurchase program announced in January as a potential support for the stock, despite ongoing risks from CRM market share loss.
- Price Target Reduction: Hettenbach lowered the price target for Veeva from $222 to $205, reflecting multiple compressions in the software sector, and projected that VEEV would provide in-line guidance with slight upside for Q4 2025 when it releases quarterly financials on March 4.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, including upgrades, downgrades, and initiations, reflecting varying market perspectives that could influence investor decisions.
- Market Reaction Expectations: Changes in analyst ratings may lead to price volatility in the respective stocks, prompting investors to monitor these shifts to assess potential investment opportunities and risks.
- Impact of Rating Changes: Upgrades typically boost investor confidence, potentially driving stock prices higher, while downgrades may trigger sell-offs, affecting the company's market performance.
- Comprehensive Rating View: For a complete overview of all analyst rating changes, investors can visit the analyst ratings page to gain deeper market insights and data support.
See More
JPMorgan: AI Disruption Fears Overstated for Software Sector
- Market Rebound Expectations: JPMorgan believes that while the market's outlook on AI disruption in the software sector is overly pessimistic, certain software companies are demonstrating greater resilience, potentially providing rebound opportunities for investors, especially given the current overly bearish sentiment.
- Extreme Price Volatility: Analysts point out that the extreme price action in software stocks has led to unrealistic expectations regarding AI disruption, which may prompt a rotation back into higher-quality companies, thereby improving portfolio performance.
- AI Profitability Gains: Companies in the S&P 500 that have adopted AI have seen net margins expand by approximately 2 to 3 percentage points more than their peers, indicating that AI technology is already delivering productivity gains and reflecting that corporate adoption is enhancing profitability.
- ETF Performance Decline: The State Street SPDR S&P Software & Services ETF (NYSE:XSW) is down 20.58% year-to-date, illustrating the overall pessimistic sentiment towards the software sector, despite some companies potentially benefiting from AI infrastructure demand.
See More
Microsoft and 18 Other Software Firms Poised for Resilience
Market Impact: The software sector has experienced a $2 trillion loss due to concerns over potential disruptions from artificial intelligence technology.
Investment Perspective: Analysts at J.P. Morgan view this downturn as a buying opportunity and have identified several AI-resistant companies, including Microsoft and CrowdStrike.
See More
Microsoft and CrowdStrike Top List of 19 Stocks Resilient to AI Changes
Market Impact: The software sector has experienced a significant decline, losing approximately $2 trillion due to concerns over potential disruptions from artificial intelligence technology.
Investment Perspective: Analysts at J.P. Morgan view this downturn as a potential buying opportunity and have identified a list of companies that are resistant to AI-related disruptions.
See More
Veeva Link Enhances Customer Engagement for Biopharma
- Standardization of Customer Engagement: Veeva Link Key People has been adopted as a standard by 13 of the top 20 biopharma companies, enhancing customer engagement and providing data support globally, which is expected to significantly improve customer relationships and market responsiveness.
- New Client Growth: In the past year, Veeva Link Key People added 38 new clients, including three of the world's leading biopharma companies, indicating widespread recognition and demand in the industry, further solidifying Veeva's market position.
- Data-Driven Decision Making: Bayer AG's VP stated that the integration of Link Key People data has become central to their decision-making process, enhancing precision marketing capabilities and facilitating interactions with healthcare professionals, ultimately aiding in patient care improvement.
- Technological Innovations: Veeva enhances customer interaction experiences through innovations such as AI-driven summaries, personalized notifications, and new data sources, while the Link Direct API provides rapid data access, further driving digital transformation in the biopharma industry.
See More
