NEW YORK (TheStreet) -- Veeva Systems Inc.  (VEEV) - Get Report has been upgraded to "overweight" from "equalweight" at Morgan Stanley at a set price target of $40.

"Veeva is a TAM expansion story in our view," Morgan Stanley said. "And the company is executing on that front with early success in both vault and network...We believe some investors are overlooking the opportunity for Veeva to become the leading IT cloud for Life Sciences, beyond just SFA."

"We think the stock now undervalues the long term growth potential of the business, and we are upgrading to "overweight"...we expect increasing positive data around new products, sales to drive shares higher over time for those willing to ride out the noise, while Veeva's growth and margin profile remains among the best in SaaS," the firm added.

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