Veeva Systems (NYSE:VEEV) Rating Lowered to "Neutral" at Citigroup

Key Points

• Citigroup downgraded Veeva Systems from "buy" to "neutral" with a $176 price target (about a 12% upside), and the stock was reported down roughly 5.7% that day.
• Analyst and institutional picture remains mixed-to-positive: consensus is a "Moderate Buy" with an average price target of $278.70 (16 buys, 8 holds, 1 sell) and high institutional ownership (~88.2%).
• Veeva recently beat quarterly EPS and revenue (EPS $2.06 vs. $1.94; revenue $835.95M), posted 16% revenue growth year-over-year, provided FY2027 guidance, and its board authorized a $2.0 billion share buyback (up to ~5.5% of shares).

Veeva Systems (NYSE:VEEV - Get Free Report) was downgraded by stock analysts at Citigroup from a "buy" rating to a "neutral" rating in a note issued to investors on Friday, Marketbeat.com reports. They currently have a $176.00 price objective on the technology company's stock. Citigroup's target price would suggest a potential upside of 12.10% from the company's previous close.

A number of other research firms have also recently issued reports on VEEV. UBS Group increased their price objective on shares of Veeva Systems from $200.00 to $220.00 and gave the stock a "neutral" rating in a research report on Thursday, March 5th. The Goldman Sachs Group started coverage on Veeva Systems in a research report on Tuesday, January 13th. They issued a "sell" rating and a $215.00 target price for the company. Needham & Company LLC dropped their price target on Veeva Systems from $355.00 to $270.00 and set a "buy" rating on the stock in a research note on Thursday, March 5th. Oppenheimer cut their price target on Veeva Systems from $325.00 to $275.00 and set an "outperform" rating on the stock in a report on Tuesday, February 24th. Finally, Royal Bank Of Canada decreased their price objective on Veeva Systems from $330.00 to $275.00 and set an "outperform" rating for the company in a report on Thursday, March 5th. Sixteen investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $278.70.

Veeva Systems Stock Down 5.7%

NYSE:VEEV opened at $157.00 on Friday. The company has a fifty day moving average of $181.57 and a 200-day moving average of $230.86. The firm has a market capitalization of $25.64 billion, a P/E ratio of 29.02, a P/E/G ratio of 1.10 and a beta of 1.10. Veeva Systems has a twelve month low of $156.23 and a twelve month high of $310.50.

Veeva Systems (NYSE:VEEV - Get Free Report) last issued its earnings results on Wednesday, March 4th. The technology company reported $2.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.94 by $0.12. The business had revenue of $835.95 million for the quarter, compared to analyst estimates of $810.95 million. Veeva Systems had a net margin of 28.44% and a return on equity of 13.80%. Veeva Systems's revenue was up 16.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.74 earnings per share. Veeva Systems has set its FY 2027 guidance at 8.850- EPS and its Q1 2027 guidance at 2.130-2.14 EPS. On average, analysts anticipate that Veeva Systems will post 4.35 EPS for the current fiscal year.

Veeva Systems declared that its Board of Directors has authorized a stock buyback plan on Monday, January 5th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the technology company to buy up to 5.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board believes its shares are undervalued.

Insider Transactions at Veeva Systems

In other Veeva Systems news, insider Thomas D. Schwenger sold 1,000 shares of the business's stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $231.43, for a total transaction of $231,430.00. Following the completion of the sale, the insider directly owned 23,204 shares of the company's stock, valued at approximately $5,370,101.72. The trade was a 4.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 10.30% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of VEEV. Norges Bank bought a new position in Veeva Systems during the 4th quarter valued at $332,412,000. Alphinity Investment Management Pty Ltd bought a new stake in shares of Veeva Systems in the 3rd quarter worth $422,241,000. Durable Capital Partners LP purchased a new stake in shares of Veeva Systems in the second quarter valued at about $281,351,000. AQR Capital Management LLC raised its holdings in shares of Veeva Systems by 111.7% in the second quarter. AQR Capital Management LLC now owns 1,838,046 shares of the technology company's stock valued at $526,508,000 after purchasing an additional 969,905 shares during the last quarter. Finally, ABN AMRO Bank N.V. bought a new position in shares of Veeva Systems during the third quarter valued at about $246,625,000. Hedge funds and other institutional investors own 88.20% of the company's stock.

Veeva Systems Company Profile

Veeva Systems NYSE: VEEV is a cloud software company that develops industry-specific applications and data solutions for the global life sciences sector. Founded in 2007 and headquartered in Pleasanton, California, Veeva focuses on helping pharmaceutical, biotechnology, medical device and consumer health companies manage regulated content, clinical and regulatory processes, quality systems, and commercial operations in a compliant, cloud-native environment. The company completed its initial public offering in 2013 and has since expanded its product suite and international footprint.

Veeva's product portfolio centers on its Vault platform and related application suites, which provide content and data management, clinical trial and regulatory workflows, quality management, and structured commercial capabilities such as customer relationship management and promotional content management.

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