Analyst Shrenik Kothari of Robert W. Baird maintained a Buy rating on Varonis Systems, retaining the price target of $58.00.
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Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Varonis Systems’ strong performance and growth potential. The company reported impressive second-quarter results, with a significant increase in its SaaS business, which now represents 69% of the total company ARR, up from 61% in the previous quarter. This growth in SaaS, alongside a consistent acceleration in year-over-year ARR growth for seven consecutive quarters, underscores the company’s robust momentum.
Additionally, Varonis Systems raised its full-year 2025 ARR and revenue guidance, indicating confidence in continued growth. The company’s strategic focus on data-centric cloud security, AI adoption, and MDDR automation are driving this momentum. Furthermore, the completion of a share repurchase program, along with better-than-expected financial metrics such as operating margin and free cash flow, further supports the positive outlook and the Buy rating assigned by Shrenik Kothari.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $65.00 price target.