Veeva Systems Inc (NYSE:VEEV) shares leapt almost 7% on Wednesday after the company posted a strong fiscal second-quarter earnings beat. On back of these stellar results, Canaccord analyst Richard Davis reiterates a Buy rating on VEEV, while lifting the price target from $35 to $43, which represents a 7% increase from where the shares last closed.

The cloud-based software company reported numbers Davis deems “impressive across the board,” with revenue of $131.3 million, a 34% year-over-year jump that topped the analyst’s estimate by $4.8 million. Meanwhile, subscription revenue increased 40% year-over-year, and calculated billings reached $127.3 million, a 32% year-over-year growth “far surpassing” Davis’ high end guidance projection of $110 million. Non-GAAP operating margins and non-GAAP EPS reached 28.0% and $0.15, also ahead of the analyst’s expectations.

Furthermore, VEEV upped its full year fiscal 2017 revenue and EPS guidance by about $8.5 million and $0.045, respectively. Also, management now indicates billings to rise 25% to 26% in the fiscal year of 2017, another jump of 24%. Davis’ new forecasts anticipate a 29% growth in revenues and 26.5% operating margins delivery, which the analyst notes is “a sum that is best-in-class among the cloud universe.”

“Veeva had a high bar going into this quarterly print in terms of expectations and the firm decisively cleared it. 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. Veeva remains a marquee firm in the sector and in our experience top notch firms get a disproportionate share of incremental investor money,” Davis concludes.

If Veeva continues to rise on the back of what has proved to be a solid year for the company, Davis has every reason to remain bullish on the stock, that while not the cheapest, it is worthy to note that “quality rarely comes inexpensively.”

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, top five-star analyst Richard Davis has achieved a high ranking of #64 out of 4,129 analysts. Davis upholds a 62% success rate and yields 10.4% in his annual returns. When recommending VEEV, Davis earns 16.0% in average profits on the stock.

TipRanks analytics exhibit VEEV as a Strong Buy. 100% of analysts polled in the last 3 months rate a Buy on VEEV. The consensus price target stands at $44.25, marking a nearly 11% upside from where the stock is currently trading.Screen Shot 08-31-16 at 06.51 PM