Veeva Systems Inc. (NYSE:VEEV) Analysts Are Pretty Bullish On The Stock After Recent Results
The annual results for Veeva Systems Inc. (NYSE:VEEV) were released last week, making it a good time to revisit its performance. Veeva Systems reported US$2.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.22 beat expectations, being 3.2% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Veeva Systems
Taking into account the latest results, the current consensus from Veeva Systems' 22 analysts is for revenues of US$2.74b in 2025. This would reflect a meaningful 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 27% to US$4.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.75b and earnings per share (EPS) of US$3.59 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.4% to US$233. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Veeva Systems, with the most bullish analyst valuing it at US$270 and the most bearish at US$160 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Veeva Systems' past performance and to peers in the same industry. We would highlight that Veeva Systems' revenue growth is expected to slow, with the forecast 16% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% per year. Even after the forecast slowdown in growth, it seems obvious that Veeva Systems is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Veeva Systems following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Veeva Systems going out to 2027, and you can see them free on our platform here..
You still need to take note of risks, for example - Veeva Systems has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
