Mike Cikos, an analyst from Needham, maintained the Buy rating on Varonis Systems. The associated price target was raised to $70.00.
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Mike Cikos has given his Buy rating due to a combination of factors including Varonis Systems’ impressive performance in the second quarter of 2025. The company’s management has shown confidence in the ongoing transition to a SaaS model and the steady demand environment, which aligns with previous quarter’s communications. Additionally, Varonis has increased its annual recurring revenue guidance for 2025, reflecting the quarter’s strong results, and has adjusted its expected SaaS mix to 82% by year-end.
Another reason for the Buy rating is the growing importance of data security, especially in the context of AI. Varonis’s strategic partnership with Microsoft and its protection for ChatGPT Enterprise are seen as enhancing the company’s visibility. Furthermore, the management’s focus on acquiring new customers and larger initial deals is expected to support a return to over 20% ARR growth. However, there is some uncertainty regarding the growth of existing customers’ ARR as the benefits of conversion diminish.
Cikos covers the Technology sector, focusing on stocks such as Cellebrite DI, Cognyte Software, and Zscaler. According to TipRanks, Cikos has an average return of 13.3% and a 56.15% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $62.00 price target.