UPDATE: Deutsche Bank Initiates Coverage on Veeva Systems on Market Leader Position

In a report published Monday, Deutsche Bank analyst Nandan Amladi initiated coverage on

with a Buy rating and $45.00 price target. In the report, Deutsche Bank noted, “Veeva's cloud-based applications increase productivity and compliance of sales and marketing personnel, and have been successful in replacing legacy on-premise solutions in the life sciences industry. We estimate Veeva has ~10% penetration in their core CRM market ($2bn TAM) and <4% penetration in an overall $5bn TAM, with their broader content management and data management products. We believe Veeva's industry cloud model enables deeper specialization and can achieve greater market share (>50%) over time, with high margins, as seen by solid record of growth (3-yr CAGR of 114%) and margins (24% op margins in FY2013). Initiate with Buy and $45 PT.” Veeva Systems closed on Friday at $40.54.