Analysts at Wells Fargo upgraded Veeva Systems (NYSE:VEEV) from an Equal Weight rating to Overweight. The investment firm also raised its price target for the cloud-computing company from $211 to $229. The analysts noted potential double-digit revenue growth for Veeva’s Commercial Cloud.
According to the analysts, Veeva’s Safemine data approach gives it a competitive edge over rivals. Within the next seven years, they anticipate data-related revenue will drive the Commercial Cloud’s reacceleration to the mid-teens.
Despite the tailwinds, Wells Fargo noted that Veeva’s market share ranks second to IQVIA’s (NYSE:IQV). However, it stated that this scenario provides a good opportunity for Veeva to grow and expand beyond forecasts.
Furthermore, the analysts pointed out Veeva’s competitive strength in defending its CRM business for top pharma clients. Indeed, the CRM is used by 85% of pharma sales representatives. Likewise, the company’s add-ons and data integration with clients provide a helpful advantage over competitors.
Additionally, they noted that the firm’s 15 years of operation in the sector gives it an edge over new entrants, as newcomers often face difficulties setting up their businesses to meet regulatory standards. Lastly, the company’s patented data approach is a differentiator, according to Wells Fargo.
What is the Stock Forecast for VEEV?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on VEEV stock based on seven Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic above. Furthermore, the average VEEV price target of $224.17 per share implies 15.08% upside potential.
