Varonis Systems: Strong Growth and SaaS Transition Justify Buy Rating

Analyst Shaul Eyal of TD Cowen reiterated a Buy rating on Varonis Systems (VRNS – Research Report), retaining the price target of $59.00.

Shaul Eyal has given his Buy rating due to a combination of factors that highlight Varonis Systems’ strong performance and growth potential. The company’s first-quarter results for 2025 surpassed expectations, with annual recurring revenue (ARR) increasing by 19% year-over-year, exceeding the consensus estimate. This growth is supported by a successful transition to a SaaS model, which saw a significant increase in revenue and a higher mix of SaaS in their offerings.
Despite macroeconomic uncertainties, Varonis Systems has raised its full-year ARR guidance, indicating confidence in sustained growth. The company is effectively navigating the competitive landscape, with no significant changes in market dynamics affecting its position. Additionally, Varonis’ consistent execution across various geographic regions and its strategic focus on data security and AI adoption further bolster its growth prospects. These factors collectively justify the Buy rating, with a price target reflecting a strong valuation based on future revenue expectations.

In another report released today, Barclays also maintained a Buy rating on the stock with a $54.00 price target.