Veeva Systems (NYSE:VEEV) was cut to Underweight from Equal Weight at Morgan Stanley on Wednesday, with the firm maintaining a $181 target price for the stock.

MS analysts told investors in a note that there are risks to the company’s core CRM business. VEEV shares are down more than 3% in early trading.

“We expect Veeva’s lock on the Life Sciences CRM market to be tested by Salesforce, representing the most formidable threat yet,” the analysts wrote.

“If Salesforce enters the market, we see 5% or more potential loss in revenue for Veeva, a risk that’s not captured in the stock’s premium valuation,” they added.

Furthermore, while Morgan Stanley believes the stock will respond favorably to earnings, they believe it has “now overshot fair value.”

“If billings growth misses in 2H (MSe of 16% y/y is in line with the Street) on incremental SMB weakness or evidence of Salesforce’s (covered by Keith Weiss) interest in a pharma CRM emerges, VEEV could potentially revisit the recent lows of ~$160, representing 20% downside,” the analysts added.