Varonis price target raised to $45 from $40 at Piper Sandler

Piper Sandler raised the firm’s price target on Varonis to $45 from $40 and keeps a Neutral rating on the shares. The firm notes progress on the SaaS transition continued in Q4, reaching 23% of the ARR base, as both new and existing customers increasingly opt for the new solution – aiding upside to ARR in the quarter. However, net new subscription customer growth declined for the 4th consecutive year and NRR metrics also weakened, Piper adds. The firm remains optimistic about the long-term benefits of moving to a SaaS model, but remains on the sidelines given some of these decelerating trends as it is not seeing evidence of increased top of funnel activities translate into key metrics.