Shaul Eyal, an analyst from TD Cowen, maintained the Buy rating on Varonis Systems. The associated price target remains the same with $40.00.
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Shaul Eyal has given his Buy rating due to a combination of factors that balance near‑term headwinds with a constructive longer‑term view. He expects first‑quarter results to land roughly in line with Street estimates, with recurring revenue growth moderating as federal and state government customers face hurdles in moving to the SaaS platform, and some legacy on‑premises contracts likely to lapse and weigh on free cash flow and annual recurring revenue in fiscal 2026.
At the same time, he notes that SaaS now accounts for the vast majority of revenue, margins should remain within management’s guidance even with integration costs from the AllTrue.ai acquisition, and overall profitability is tracking as planned. While acknowledging competitive pressures from rival DSPM vendors actively targeting Varonis’s on‑premises base, he argues that confirmation of the 2026 outlook should ease investor anxiety, and he believes that consistent execution on the SaaS transition and long‑term strategy can enable the shares to recover toward his reiterated $40 price target.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VRNS in relation to earlier this year.