Robert W. Baird analyst Shrenik Kothari has maintained their bullish stance on VRNS stock, giving a Buy rating yesterday.
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Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Varonis Systems’ promising growth trajectory. The company is expected to benefit from its second-easiest annual recurring revenue (ARR) comparison in the second quarter, with better-than-expected SaaS conversions and strong demand driven by its MDDR/CoPilot offerings. These factors suggest continued momentum in their go-to-market execution, with the SaaS transition on track to be completed by year-end. The secular tailwinds in data security and the unmatched depth of features are expected to drive momentum into the second half of the fiscal year 2026.
Furthermore, Kothari notes that Varonis Systems is well-positioned for revenue acceleration in the latter half of fiscal year 2026, supported by improving operating leverage. The company’s strong channel partner feedback and successful SaaS migrations are delivering on the higher end of ARR uplift expectations. Despite facing some transition headwinds, the sentiment is expected to improve as investors adjust their expectations regarding ARR and revenue mechanics. The company’s valuation remains attractive, and its leadership in the data security market, coupled with solid execution, supports the Buy rating.
Kothari covers the Technology sector, focusing on stocks such as Okta, Palo Alto Networks, and Varonis Systems. According to TipRanks, Kothari has an average return of 26.1% and a 75.21% success rate on recommended stocks.
In another report released yesterday, Cantor Fitzgerald also maintained a Buy rating on the stock with a $60.00 price target.