Varonis price target raised to $40 from $35 at RBC Capital

RBC Capital raised the firm’s price target on Varonis to $40 from $35 and keeps an Outperform rating on the shares ahead of its Q3 results. Against improved investor sentiment based on solid checks, investor focus should remain on the demand environment as well as the SaaS mix-shift, which will likely continue to progress faster than forecast, the analyst tells investors in a research note. The transition continues to be a near-term headwind to revenue and operating margin, but the company’s ARR and free cash flow are focus metrics, RBC adds, stating that it “continues to appreciate” a prudent view of macros embedded in the management’s guidance.