Shares of Veeva Systems (VEEV) are under pressure after short-seller Citron Research said that market correction should hit the stock “harder than any other SaaS” peer and put a $65 price target on the shares. This morning, Leerink analyst David Larsen started coverage of Veeva with an Outperform rating and $120 price target. MARKET CORRECTION TO HIT VEEVA HARD: In a tweet, Andrew Left’s Citron Research said that, “[Veeva] price target $65. Competition has arrived as multiple is at peak and short interest at low. Same setup as [Nvidia] $NVDA at $280. A market correction will hit $VEEV harder than any other SaaS name. Buyout off the table until $40.” LEERINK SAYS BUY: In a research note this morning, Leerink’s Larsen initiated coverage of Veeva Systems with an Outperform rating and $120 price target, citing a significant number of tailwinds, earnings growth and potential. The analyst told investors that he likes how the company has leading market share in the “very attractive” Life Sciences space, and noted that the breadth of solutions in Veeva’s portfolio seems vast, high quality, and is growing. While Veeva is best known for its customer relationship management platform, Larsen likes how the company is expanding into the Electronic Data Capture market, as well as consumer packaged goods and other areas outside of Life Sciences. Further, Veeva has consistently posted “excellent” top-line growth and operating margins are “impressive” and continue to expand, he contended, adding that he likes how the management team is experienced and proven. PRICE ACTION: In afternoon trading, shares of Veeva Systems have dropped about 5% to $94.37.
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