Veeva Systems, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Craig Hettenbach from Morgan Stanley maintained a Sell rating on the stock and has a $222.00 price target.
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Craig Hettenbach has given his Sell rating due to a combination of factors that suggest potential challenges for Veeva Systems. Firstly, despite the company’s Investor Day presentation, there were no significant new developments or updates on capital allocation, which could be a critical factor moving forward. The company’s AI strategy was introduced, but it lacked detailed financial projections, leaving uncertainties about its future impact.
Furthermore, while Veeva’s current business conditions appear stable, with Q3 tracking in line with expectations, the growth targets set for 2030 rely heavily on specific areas like Clinical, which may present risks if not achieved. Additionally, the AI initiatives, although promising, have not been factored into the 2030 revenue targets, indicating potential over-reliance on existing growth drivers. These elements combined create a cautious outlook, justifying the Sell rating.
Based on the recent corporate insider activity of 78 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VEEV in relation to earlier this year.