Citi cuts Varonis target, opens ‘negative catalyst watch’

Citi lowered the firm’s price target on Varonis (VRNS) to $46 from $57 and keeps a Neutral rating on the shares. The firm also opened a “30-day negative catalyst watch” on the shares. With the company’s installed base conversions likely to trend up, declining net revenue retention optics are likely for 2024 which is being underappreciated, risking a negative headline read from the Q4 report, the analyst tells investors in a research note. Citi sees “limited upside scope from here” on account of competition and its “un-inflecting demand fieldwork.”