On Tuesday, the company delivered better-than-expected results for the second quarter and offered an upbeat outlook. In the last four quarters, its earnings provided surprise between 9.10 percent and 36.4 percent.
In a research note to clients, the brokerage said, "We rarely see quarters where basically everything was good — print and guide — but this was one of those. As we said in our preview note, we believe we are at the foothills of a Q4 software rally as investors circle into this sector because fundamentals are very good and the growth is rapid."
The analyst termed Veeva a marquee firm and see the stock price continuing its uptrend. The stock has already seen a good year. While stating shares of the company are not trading cheap, the quality, which comes rarely, suggest it is an inexpensive one.
According to the brokerage, positive catalyst included billings growth between 25 and 26 percent in 2017, higher than the previous projection of 24 percent, and increased EPS and revenue forecast. The lead analyst thinks revenue could advance about 29 percent to deliver 26.5 percent operating margins. This could be seen only in a best-in-class, the lead analyst concluded.
The stock traded up by 8.82 percent to $40.96 at time of writing Wednesday.
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