Varonis downgraded to Hold after rally at Needham

Needham analyst Alex Henderson downgraded Varonis Systems to Hold from Buy without a price target. The stock has rallied sharply from its lows to surpass the firm’s prior $26 price target, the analyst tells investors in a research note. At a current valuation, Needham sees limited upside and a balanced risk/reward even if the company’s guidance proves conservative. It is costly to carry two code bases and transition a sales force during a period of "budget malaise," which could give pause to customers on feature upsell, contends the firm.