I love it when fundamentals and technicals line up together. I am in general very bullish towards cloud-software companies, thats the future, especially when they have a footing in the pharma industry like veeva. This is a huge market and growing strongly year by year. The chart is a textbook bull flag. I am expecting a move into 80$ over the coming months. Longterm over the coming years we can also see prices above 100$. The only reasonable place to put a stop right now is below 50$. So do your own diligence and research, this is just my opinion towards this stock.
Fundamental analysis by Morgan Stanley:
Veeva Systems Inc
VEEV, a cloud-computing company focused on the pharma and life sciences industry, is an underpriced asset within the broader SaaS universe, according to Morgan Stanley.
The Analyst
Morgan Stanley analyst Stan Zlotsky upgraded Veeva Systems from Equal-weight to Overweight and increased the price target from $69 to $72.
The Thesis
Veeva Systems has durable growth — fueled by an expanding $17-billion total addressable market — and margin potential that is not being reflected in current trading levels, Zlotsky said in a Tuesday note. A conservative setup into 2019 offers scope for estimates and shares to move up, he said.
The company's best-in-class economics are likely to drive longer-term operating margin to 43 percent, representing the highest margin potential in Morgan Stanley's coverage universe, Zlotsky said.
"Veeva's above average sales efficiency and a disciplined go-to-market has enabled the company to simultaneously deliver strong revenue growth and greater than 30-percent operating margins today, well above the 18-percent average among more mature SaaS peers," the analyst said.
Morgan Stanley estimates 16-percent revenue growth on a CAGR basis to $1.7 billion and a 36-percent operating margin by calendar year 2023, resulting in free cash flow of $593 million.
With the 12-percent pullback in Veeva Systems shares since June 2017 compared to a 14-percent gain for the SaaS peer group, Morgan Stanley sees an attractive entry point to rebuild positions in the shares.
Fundamental analysis by Morgan Stanley:
Veeva Systems Inc
VEEV, a cloud-computing company focused on the pharma and life sciences industry, is an underpriced asset within the broader SaaS universe, according to Morgan Stanley.
The Analyst
Morgan Stanley analyst Stan Zlotsky upgraded Veeva Systems from Equal-weight to Overweight and increased the price target from $69 to $72.
The Thesis
Veeva Systems has durable growth — fueled by an expanding $17-billion total addressable market — and margin potential that is not being reflected in current trading levels, Zlotsky said in a Tuesday note. A conservative setup into 2019 offers scope for estimates and shares to move up, he said.
The company's best-in-class economics are likely to drive longer-term operating margin to 43 percent, representing the highest margin potential in Morgan Stanley's coverage universe, Zlotsky said.
"Veeva's above average sales efficiency and a disciplined go-to-market has enabled the company to simultaneously deliver strong revenue growth and greater than 30-percent operating margins today, well above the 18-percent average among more mature SaaS peers," the analyst said.
Morgan Stanley estimates 16-percent revenue growth on a CAGR basis to $1.7 billion and a 36-percent operating margin by calendar year 2023, resulting in free cash flow of $593 million.
With the 12-percent pullback in Veeva Systems shares since June 2017 compared to a 14-percent gain for the SaaS peer group, Morgan Stanley sees an attractive entry point to rebuild positions in the shares.
交易進行:
Entered around 56$
Stop for now below 50$
Target 80$
Stop for now below 50$
Target 80$
交易結束：目標達成:
Closed! Trade of the year so far! Made very nice profits with this position.
