William Blair analyst Jason Ader has maintained their bullish stance on VRNS stock, giving a Buy rating on October 29.
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Jason Ader has given his Buy rating due to a combination of factors that reflect confidence in Varonis Systems despite recent challenges. Ader acknowledges the unexpected drop in Varonis’s stock following their third-quarter earnings report but suggests that this reaction may have been excessive. He believes that the company’s historical sales execution has been strong, and this consistency provides a foundation for optimism.
Furthermore, Ader highlights that Varonis has successfully navigated significant business model transitions in the past, and their management has reported better-than-expected term renewals earlier in the year. While there are concerns about potential structural issues within the sales organization and rising competition, Ader is inclined to give the company the benefit of the doubt. He suggests that the recent challenges might be due to underestimating the difficulty of converting the last holdouts of term licenses, rather than a deeper issue, thus maintaining a positive outlook on the stock.
In another report released on October 29, Barclays also maintained a Buy rating on the stock with a $50.00 price target.