William Blair analyst Jason Ader has reiterated their bullish stance on VRNS stock, giving a Buy rating yesterday.
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Jason Ader has given his Buy rating due to a combination of factors that highlight Varonis Systems’ strong performance and promising outlook. The company reported impressive results in the second quarter, surpassing expectations in key metrics such as total ARR and free cash flow, which grew by 19% year-over-year and achieved an 11.4% FCF margin. This outperformance is largely driven by the increasing adoption of Varonis’s SaaS and MDDR offerings, which are enhancing both new customer acquisition and existing customer expansion.
Additionally, Varonis has raised its full-year ARR and revenue guidance, reflecting confidence in sustained demand for data security solutions. Despite macroeconomic uncertainties, the demand for Varonis’s offerings remains robust, underscoring the company’s competitive position in the data security and governance space. Management’s decision to increase investments aims to leverage the growing market opportunity, ensuring durable growth beyond the current SaaS model transition. These factors collectively support Jason Ader’s positive outlook and Buy rating for Varonis Systems.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $65.00 price target.