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Research Alert: CFRA Maintains Hold Rating On Shares Of Veeva Systems Inc.

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target to $175 from $215, 19.7x our FY 27 EPS estimate, well below VEEV's historical average (3-year average of 34.5x) to reflect increased competitive threats, slower growth as the business matures, and a challenging macro environment for small/mid size biopharma customers, in our view. Our target is near the low end of VEEV's ten-year historical forward average trading range (~17.1x), much of which we attribute to longer-term investor concerns for application software businesses, though we think near-term fundamentals remain healthy. While VEEV is part of the health care technology sub-industry, we note that CFRA recently moderated our view on the application software sub-industry (part of the info tech sector) to neutral from positive, with rapid developments in AI capabilities shaking investor confidence in established SaaS businesses and posing elevated competitive risks. We keep our FY 27 EPS estimate at $8.85 and lower our FY 28 EPS estimate to $9.88 from $10.03.

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