Needham & Company Starts Veeva Systems (VEEV) at Buy

Needham & Company initiates coverage on Veeva Systems (NYSE: VEEV) with a Buy rating and a price target of $33.00.

Analyst Scott Berg commented: "We initiate coverage of Veeva Systems (VEEV) with a Buy rating and $33 price target. We believe Veeva is the vision of what we call SaaS 2.0 -- a platform vendor with the focus of vertical applications. We believe Veeva has a huge sales opportunity as it leverages its success in vertical CRM with its new vertical content management applications, and recent financial results suggest this product strategy has a long sales tail. We also have a strong preference for the company’s operating model, which we believe will continue to be more profitable than the average SaaS company over time. We acknowledge that VEEV’s current high valuation (6.8x EV/FY17E revenues) likely limits additional multiple expansion, but we believe high-quality dominant themes like Veeva deserve premium valuations with sustained executional excellence."

For an analyst ratings summary and ratings history on Veeva Systems click here. For more ratings news on Veeva Systems click here.

Shares of Veeva Systems closed at $28.85 yesterday.

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