Veeva downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Craig Hettenbach downgraded Veeva Systems (VEEV) to Underweight from Equal Weight with an unchanged price target of $181. The analyst expects Veeva’s “lock” on the life sciences customer relationship management market to be tested by Salesforce (CRM), representing its “most formidable threat yet.” If Salesforce enters the market, the firm sees 5% or more potential loss in revenue for Veeva, a risk it believes is not captured in the stock’s “premium valuation.” If Veeva’s billings growth misses second half estimates on incremental small business weakness or evidence of Salesforce’s interest in a pharma customer relationship management emerges, Veeva could potentially revisit the recent lows of $160 per share, representing 20% downside, says Morgan Stanley.