Veeva selloff on Dassault report buying opportunity, says Wells Fargo

Wells Fargo says Veeva Systems (VEEV) shares are trading lower after Dassault Systemes guided its Medidata business, a competitor to Veeva, to grow slower year-over-year in 2024 as study starts decline. However, Veeva “should be ok” as monetization via its enterprise license agreements do not rely on trial activity, the analyst tells investors in a research note. The firm says that unlike Medidata, Veeva doesn’t engage in volume-based monetization. The firm says the company’s economics are not exposed to trial activity. Medidata read-through risks to Veeva are low and the selloff is a buying opportunity, contends Wells, which keeps an Overweight rating on the shares with a $229 price target.