Matt Dezort, an analyst from Needham, reiterated the Buy rating on Varonis Systems (VRNS – Research Report). The associated price target remains the same with $67.00.
Matt Dezort has given his Buy rating due to a combination of factors that highlight both the opportunities and challenges faced by Varonis Systems. The company is recognized for its technological advantages, particularly in securing Generative AI deployments, which presents a significant growth opportunity. However, the outlook for the fourth quarter and the pipeline for 2025 appear slightly below expectations, primarily due to competition from cloud-first data security vendors. Additionally, the pricing structure of their SaaS offerings and a general trend towards cost-consciousness among customers are impacting growth. Despite these challenges, the overall potential in AI and the acceleration in annual recurring revenue (ARR) remain encouraging indicators for Varonis’ future performance.
Given these insights, while there is a cautious stance in the short term, the long-term prospects driven by AI opportunities and execution capabilities support the Buy rating. The substantial business base with fluctuating growth highlights both the competitive landscape and the resilience of Varonis’ offerings. Thus, the combination of promising AI potential and strategic execution justifies the continued positive outlook on the stock.
In another report released today, Barclays also maintained a Buy rating on the stock with a $60.00 price target.
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Varonis Systems (VRNS) Company Description:
Varonis Systems, Inc. engages in providing data security and analytics. It operates through the following segments: United States, EMEA, and Rest of the World. Its products includes datadvantage, data classification engine, data transport engine, Varonis edge, datanswers, datalert, dataprivilege, automation engine, and GDPR patterns. The company was founded by Yaki Faitelson and Ohad Korkus on November 3, 2004 and is headquartered in New York, NY.
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