UPDATE: Morgan Stanley Upgrades Veeva Systems

On Wednesday, Morgan Stanley upgraded shares of Veeva Systems (NYSE: VEEV) from Equalweight to Overweight and maintained a $40 price target.

Analyst Jennifer Lowe believes Veeva bears “underestimate the potential of products outside of Sales Force Automation (SFA), while SFA still has room to grow.”

Lowe estimates “~⅓rd of pharma sales reps use VEEV today, and sees potential for the company to double that seat count over the next five years given that 2/3rds of the 50 largest pharma companies are already customers.”

Shares of Veeva are up 2.02 percent to $26.82 in Wednesday's trading.