Why Veeva Systems Stock Flopped While the Market Popped Today
The bears came for Veeva Systems (NYSE: VEEV) on an otherwise rather bullish Thursday for the stock market. The healthcare tech company's shares lost nearly 2% of their value, while the bellwether S&P 500 index was in the black at 0.3%. An analyst's price-target cut was the culprit.
Oppenheimer prognosticator Ken Wong was the man behind the move. Before market open, he shaved $25 off his Veeva price target for a new level of $225 per share. Despite the cut, Wong maintained his outperform (i.e., buy) recommendation on the stock.
He wasn't singling out Veeva. Rather, he scaled back estimates across much of his coverage universe to adjust for the current shaky macroeconomic environment, which combined with other factors could spur businesses to lower their tech budgets. As a provider of customer relationship management (CRM) solutions for the healthcare industry, Veeva is potentially in the line of fire for such reductions.
Source Fool.com