In a report released today, Matt Dezort from Needham maintained a Buy rating on Varonis Systems (VRNS – Research Report), with a price target of $67.00.
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Matt Dezort has given his Buy rating due to a combination of factors that highlight Varonis Systems’ strong performance and strategic positioning. The company reported impressive fourth-quarter results, with Annual Recurring Revenue (ARR) increasing by 18.2% year-over-year to $642 million, surpassing analyst expectations. A significant portion of this growth was driven by their SaaS offerings, which saw an over 170% increase.
Furthermore, Varonis Systems is ahead of schedule in its transition to a SaaS model, now expected to be completed by 2025 instead of the initially planned 2027. This accelerated shift is anticipated to enhance sales productivity and opportunities for upselling and cross-selling. Additionally, the company’s efforts in General AI and a robust CoPilot pipeline are poised to contribute further to growth. These strategic advancements suggest a strong future outlook, justifying the Buy rating.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $65.00 price target.
Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VRNS in relation to earlier this year.