Tom Roderick of Stifel upgraded shares of Veeva Systems Inc (NYSE: VEEV) on Thursday to Buy from Hold with a $36 price target as shares are now trading at a “more reasonable” level.
“Back in November 2013, when we first initiated coverage of Veeva Systems with a Hold rating and the stock at nearly $41, we took a fundamentally optimistic view of the business, but were ultimately left with valuation concerns,” Roderick wrote. “Nearly 14 months later, shares are 33 percent cheaper, and we have had the added benefit of watching the evolution of the company's Vault product.”
According to Roderick, Vault has “dramatically” exceeded initial expectations, especially on the research and development side of the market. The analyst adds that based on recent discussions with management, there is no reason why Vault can't continue its “rapid ascension.”
Bottom line, Vault proves that the company is a “vertical category killer” and at current conditions, a premium multiple is justified.
Latest Ratings for VEEV
| Jan 2015 | Stifel Nicolaus | Upgrades | Hold | Buy |
| Nov 2014 | Deutsche Bank | Maintains | Buy | |
| Oct 2014 | Leerink Swann | Initiates Coverage on | Market Perform |
View More Analyst Ratings for VEEV
View the Latest Analyst Ratings
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