Veeva Systems (VEEV) cited “more optimism” among top pharmaceutical customers as macro hurdles persist, UBS Securities said Thursday in a report.
Veeva’s outlook “hints at overall demand stabilization or perhaps a H2 improvement,” UBS said.
“We expect the stock to find support given the green shoots of improvement and a likely upward revision” to the consensus for free cash flow, UBS said.
Veeva’s plans to subsidize service costs associated with migration to the new Vault CRM product will lessen the risk of losing customers to Salesforce (CRM), UBS said.
UBS reiterated its neutral rating on Veeva’s stock and kept the price target at $235. At least six other analysts raised their price targets after Veeva reported Q4 results Thursday that topped consensus estimates.
Veeva shares fell 1% in recent Friday trading.