Balanced Outlook for Veeva Systems: Hold Rating Amidst Mixed Growth Signals

In a report released yesterday, Charles Rhyee from TD Cowen maintained a Hold rating on Veeva Systems (VEEV – Research Report), with a price target of $261.00.

Charles Rhyee has given his Hold rating due to a combination of factors that influence Veeva Systems’ current market position. The company’s guidance for FY26 indicates a positive outlook with an expected increase in operating margins and a shift towards more profitable Vault products. This is likely to result in improved gross margin profiles and efficiencies in services and operating expenses.
However, while there is an anticipated acceleration in R&D growth, particularly with the expansion of EDC contracts and top 20 biopharma partnerships, the commercial growth appears to be slowing. This slowdown is attributed to the strong previous year performance of Crossix and low CRM growth ahead of migrations. Despite these challenges, the focus on R&D solutions and the expected representation of this segment in FY26 suggests a balanced outlook, justifying the Hold rating.

In another report released on March 3, Scotiabank also maintained a Hold rating on the stock with a $240.00 price target.