B.Riley initiates coverage on Varonis Systems stock with Buy rating

Investing.com - B.Riley has initiated coverage on Varonis Systems (NASDAQ:VRNS) with a Buy rating and a price target of $80.00, representing significant upside from the current price of $57.96. According to InvestingPro data, the stock is trading near its 52-week high of $60.58, with 18 analysts recently revising their earnings expectations upward.

The firm identifies Varonis as a leading provider of data security technology, noting that industry trends are generating robust demand for data security solutions.

B.Riley highlights Varonis’ differentiated technology that uniquely enables automated remediation capabilities, in addition to detecting and preventing data attacks.

The research firm acknowledges that investor expectations for Varonis were tempered earlier this year when the company reset expectations for revenue growth and earnings due to the migration of its customer base to its SaaS platform.

B.Riley expects Varonis to be well positioned for upside potential in revenue and earnings growth after it completes the migration at the end of FY25E.

In other recent news, Varonis Systems reported its second-quarter 2025 earnings, surpassing market expectations with an earnings per share (EPS) of $0.03, compared to the forecasted $0.01. The company’s revenue also exceeded predictions, reaching $152.2 million against the anticipated $148 million. This strong performance has prompted several analysts to adjust their outlooks on the company. Cantor Fitzgerald maintained an Overweight rating and raised its price target to $63.00, highlighting Varonis’ successful transition to Software-as-a-Service (SaaS), which now accounts for 69% of its annual recurring revenue (ARR). RBC Capital also increased its price target from $58.00 to $64.00, citing a 19% growth in ARR. Needham further raised its price target to $70.00, maintaining a Buy rating and expressing confidence in the company’s SaaS migration and demand environment. These developments reflect a positive sentiment among analysts regarding Varonis Systems’ recent performance and strategic direction.

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