Analyst Shrenik Kothari from Robert W. Baird maintained a Buy rating on Varonis Systems (VRNS – Research Report) and keeping the price target at $52.00.
Shrenik Kothari has given his Buy rating due to a combination of factors that suggest a favorable outlook for Varonis Systems. The company’s recent performance indicates stronger-than-expected SaaS conversions and cross-selling opportunities, particularly with their MDDR product, which are contributing to a positive demand environment. Additionally, the adoption of AI and CoPilot features is driving demand, especially in sectors like healthcare and government, enhancing the company’s growth prospects.
Despite Varonis Systems’ stock underperforming in comparison to the IGV index over the past six months, Kothari sees potential for upside. The company’s current valuation appears attractive, trading below its historical averages and its peers, suggesting a positive risk/reward scenario. The improving SaaS gross margin mix and operational leverage further support the potential for future growth, making the stock a compelling buy at its current levels.
In another report released on May 2, Barclays also maintained a Buy rating on the stock with a $52.00 price target.