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Veeva Systems appears to be a long-term winner in life sciences, according to JPMorgan. Analyst Alexei Gogolev upgraded the cloud solutions provider to overweight from neutral and lifted his price target by $40 to $330. That implies about 20.9% potential upside for Veeva, which works with customers across the life sciences industry to store data and maintain regulatory compliance. Shares of Veeva have gained more than 29% this year. JPMorgan’s upgrade comes after Veeva in late August reported a second-quarter revenue and earnings beat, which led to price target upgrades from analysts from firms such as UBS and Piper Sandler. Gogolev is bullish on Veeva market share opportunity in the growing life sciences industry. He estimated the company’s total addressable market to be roughly $20 billion, and noted that Veeva has seen strong revenue growth of 20% over the past five years — outpacing the life sciences industry growth of mid-single digits. VEEV 1Y mountain Veeva Systems stock performance over the past year. “We see VEEV growing revenue at a ~13% 3-year CAGR and FCF margins of 40%+, supported by competitively differentiated platform-approach and TAM penetration opportunity,” Gogolev wrote in a note to clients. The analyst highlighted the company’s recently announced long-term partnership with clinical research services provider Iqvia as a driver for new monetization opportunities and an acceleration in revenue growth. Iqvia, which had several legal disputes with Veeva, joined forces last month to allow their data to be used with each other’s software or services for customers. “Despite strong competition from Salesforce, we are raising VEEV rating to OW relative to our vertical SaaS coverage as we are encouraged by the opportunities unlocked by the recent IQVIA partnership and Agentic AI implementation. Given a healthy rule of 50 combination, we believe the stock deserves to re-rate from current 24x CY26E EV/EBITDA,” he said, adding that “no player in the space has the same level of depth and breadth of product offering” as Veeva. Shares rose more than 1% in the premarket following the upgrade. Most analysts are bullish on Veeva, with 19 of 32 rating it a buy or strong buy, LSEG data shows.
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