Analyst Shaul Eyal from TD Cowen reiterated a Buy rating on Varonis Systems and increased the price target to $68.00 from $62.00.
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Shaul Eyal has given his Buy rating due to a combination of factors including strong anticipated growth and strategic acquisitions. The analyst expects Varonis Systems to experience a 19% year-over-year increase in annual recurring revenue (ARR) for the third quarter of 2025, with a notable 18% growth in net new annual recurring revenue (NNARR). This growth is supported by the company’s transition to a SaaS delivery model, which is projected to more than double and constitute over 70% of the revenue mix.
Additionally, the acquisition of SlashNext is seen as a strategic move that positions Varonis in the expanding $5.2 billion email security market. While the integration of SlashNext is expected to introduce some operational expenses, it also holds potential for significant revenue synergies. Consequently, Eyal has raised the price target for Varonis Systems to $68, reinforcing his Buy recommendation.
According to TipRanks, Eyal is a top 100 analyst with an average return of 26.4% and a 69.22% success rate. Eyal covers the Technology sector, focusing on stocks such as Palo Alto Networks, Fortinet, and Okta.
In another report released on October 14, Barclays also maintained a Buy rating on the stock with a $70.00 price target.