Piper Sandler has revised its price target for Veeva Systems (VEEV, Financial), reducing it from $290 to $255, while maintaining an Overweight rating on the stock. This adjustment is part of a broader reevaluation of the cloud applications and analytics sector, as the firm anticipates near-term growth challenges.
The decision reflects several factors, including ongoing tariff and policy pressures, as well as hurdles in the adoption of artificial intelligence. These issues have contributed to a more cautious investor sentiment, marking the fourth consecutive year of moderated industry growth.
While the direct effect of tariffs on software models remains minimal, investor concerns are evident in the declining valuation multiples, which have reached their lowest level in seven years. Piper Sandler's revised outlook highlights the potential obstacles facing the sector, suggesting that enthusiasm around AI might be waning.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 28 analysts, the average target price for Veeva Systems Inc (VEEV, Financial) is $261.98 with a high estimate of $290.00 and a low estimate of $201.00. The average target implies an upside of 21.41% from the current price of $215.78. More detailed estimate data can be found on the Veeva Systems Inc (VEEV) Forecast page.
Based on the consensus recommendation from 32 brokerage firms, Veeva Systems Inc's (VEEV, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Veeva Systems Inc (VEEV, Financial) in one year is $266.27, suggesting a upside of 23.4% from the current price of $215.78. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Veeva Systems Inc (VEEV) Summary page.
