Veeva Systems Stock Intrinsic Value – Morgan Stanley Downgrades Veeva Systems Amid Salesforce Entry to CRM Market
November 15, 2023
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Morgan Stanley recently downgraded Veeva Systems ($NYSE:VEEV), a cloud-based software company that provides customer relationship management (CRM) solutions to the life sciences industry, due to the potential risks posed by Salesforce’s entry into the CRM market. Veeva Systems is a global leader in the life sciences industry, providing mission-critical cloud solutions that enable pharmaceutical, biotech, and medical device companies to accelerate their innovation. Veeva’s products span customer relationship management (CRM), content management, and commercial operations, including Veeva CRM, Vault, and Veeva Network. The company’s stock has been affected by the news of Salesforce entering the CRM market, as Morgan Stanley believes the new competition will put pressure on Veeva’s market shares.
Analysts have raised their concerns about Veeva’s potential to maintain their current dominance in the life sciences sector, and its ability to maintain its price point in face of new competition. Investors remain optimistic about the company’s future prospects; however Morgan Stanley has advised investors to be cautious and to consider other opportunities in the sector.
Market Price
Morgan Stanley recently downgraded VEEVA SYSTEMS stock from an “overweight” rating to an “equal-weight” rating, citing increased competition from Salesforce in the CRM market. This downgrade pushed shares of VEEVA SYSTEMS down by 4.3% on Tuesday from its closing price of 166.2. However, despite the downgrade, VEEVA SYSTEMS stock opened at $171.1 and closed at $173.4 at the end of the trading session, indicating that investors remain confident in the company’s long-term prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Veeva Systems. More…
| Total Revenues | Net Income | Net Margin |
| 2.23k | 540.14 | 24.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Veeva Systems. More…
| Operations | Investing | Financing |
| 977.03 | -1.36k | -11.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Veeva Systems. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.23k | 1.08k | 25.92 |
Key Ratios Snapshot
Some of the financial key ratios for Veeva Systems are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.3% | 7.5% | 17.7% |
| FCF Margin | ROE | ROA |
| 43.8% | 6.1% | 4.7% |
Analysis – Veeva Systems Stock Intrinsic Value
We at GoodWhale have thoroughly analyzed VEEVA SYSTEMS and have determined that its intrinsic value is around $264.0, as calculated by our proprietary Valuation Line. This value means that VEEVA SYSTEMS is currently undervalued by 34.3%, so it may be a good opportunity to buy the stock at its current price of $173.4. This could be a great way to benefit from the potential upside of VEEVA SYSTEMS in the long run. More…
Peers
The company’s competitors include ORHub Inc, Essence Information Technology Co Ltd, and Xybion Digital Inc.
– ORHub Inc ($OTCPK:ORHB)
CrowdStrike Holdings, Inc. is an American cybersecurity technology firm headquartered in Sunnyvale, California. It provides endpoint security, threat intelligence, and cyber attack response services. The company was founded in 2011 by George Kurtz and Dmitri Alperovitch.
– Essence Information Technology Co Ltd ($SHSE:688555)
Essence Information Technology Co Ltd is a Chinese company that provides information technology services. It has a market cap of 1.01B as of 2022 and a Return on Equity of -2.84%. The company offers services in areas such as cloud computing, big data, and artificial intelligence.
– Xybion Digital Inc ($TSXV:XYBN)
Xybion Digital Inc is a publicly traded company with a market capitalization of $157.07 million as of 2022. The company has a negative return on equity of 12.47% and is involved in the digital media industry. Xybion Digital Inc owns and operates a number of online properties, including social media, video, and email platforms. The company has a strong presence in the United States, Canada, and Europe.
Summary
Veeva Systems is a cloud-based enterprise software provider for life sciences companies. Morgan Stanley recently downgraded the stock due to potential risks associated with Salesforce entering the CRM market. Despite the downgrade, stock prices for Veeva Systems moved up on the same day. Analysts suggest that investors are optimistic due to Veeva’s long-term outlook and its ability to provide innovative solutions that help its customers remain competitive in the industry.
Investors should look for potential growth opportunities within the company’s specialized products, such as its Vault platform, which provides data management solutions, and its CLM software, which helps life sciences companies with marketing and sales initiatives. With these growth opportunities and Veeva’s capability to adapt to changes in the industry, investors should continue to monitor the stock in order to capitalize on any potential upside in the long run.
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