Analyst Mike Cikos from Needham maintained a Buy rating on Varonis Systems and keeping the price target at $70.00.
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Mike Cikos has given his Buy rating due to a combination of factors including Varonis Systems’ strategic acquisition of SlashNext. This move allows Varonis to enter the API-based Email Security market, positioning it alongside established competitors like Mimecast and Abnormal AI. The acquisition is expected to enhance Varonis’s product offering by integrating data, identity, and email security, thereby providing a more comprehensive solution.
Furthermore, Varonis anticipates significant growth opportunities from this expansion, as evidenced by the substantial acquisition cost of $150 million. The company expects this move to leverage its existing go-to-market strategies and customer relationships, despite no immediate changes to its CY25 ARR and revenue projections. Additionally, the shift into email security is seen as a strategic move to strengthen Varonis’s value proposition in the market.
According to TipRanks, Cikos is a 5-star analyst with an average return of 12.2% and a 52.98% success rate. Cikos covers the Technology sector, focusing on stocks such as Cellebrite DI, Zscaler, and Datadog.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $66.00 price target.