In a report released today, Craig Hettenbach from Morgan Stanley maintained a Sell rating on Veeva Systems (VEEV – Research Report), with a price target of $201.00.
Craig Hettenbach has given his Sell rating due to a combination of factors impacting Veeva Systems. Despite the company’s strong performance year-to-date and improved sentiment within the software sector, Hettenbach notes that Veeva is not immune to the volatile macroeconomic environment affecting the Life Sciences industry. The company’s FY26 guidance assumes stable macro conditions, but past years have shown that macroeconomic factors can significantly impact growth.
Additionally, Hettenbach highlights potential risks such as disruptions from healthcare policy changes, including job cuts at the FDA and tariffs on pharmaceutical companies. Furthermore, there is increasing pressure on Veeva’s customers to cut costs, which could extend sales cycles and reduce the number of sales representatives. The challenging backdrop for biotech funding also adds to the downside risk, and with Veeva trading at the high end of its valuation range, the risk/reward profile appears unfavorable.
According to TipRanks, Hettenbach is a 4-star analyst with an average return of 5.2% and a 55.16% success rate.