Chinese chip stocks jump as Beijing reportedly warns against Nvidia’s H20
On Tuesday, Cantor Fitzgerald reaffirmed its positive stance on Varonis Systems (NASDAQ:VRNS), maintaining an Overweight rating and a $60.00 price target. The research firm’s evaluation is grounded in the expectation of Varonis’ continued growth and strategic positioning within its industry. According to InvestingPro data, the stock’s current price of $50.65 sits between analysts’ targets ranging from $39 to $65, with technical indicators suggesting the stock is in overbought territory.
The firm’s analysts support their price target with a 2025 estimated enterprise value to sales (EV/Sales) multiple of 12.2 times, highlighting that this is higher than the 9.5 times EV/Sales multiple at which Varonis’ peers are trading. This optimistic valuation reflects the analysts’ belief in Varonis’ accelerated growth in Software (ETR:SOWGn) as a Service (SaaS) and annual recurring revenue (ARR). The company’s impressive gross profit margin of 82.29% supports this premium valuation, though InvestingPro analysis indicates the stock is trading at relatively high revenue multiples.
The analysts at Cantor Fitzgerald have expressed confidence in Varonis’ market strategy and execution capabilities. They emphasize that the company’s growth is not only a result of its strong go-to-market strategy but also its leading position in an increasingly strategic market segment. This confidence is supported by Varonis’ solid revenue growth of 13.34% over the last twelve months, with the $5.67 billion market cap company maintaining steady expansion.
Varonis Systems specializes in data security and analytics and has been recognized for its role in protecting sensitive information and responding to the evolving cybersecurity landscape. The company’s focus on SaaS solutions is particularly relevant as businesses continue to shift towards cloud-based services. For a deeper understanding of Varonis’ market position and growth potential, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports.
The affirmation of the Overweight rating and price target suggests that Cantor Fitzgerald anticipates Varonis to continue its trajectory of growth and to remain a strong player in its field. The firm’s analysis indicates that Varonis is well-positioned to capitalize on the growing need for robust data security solutions.
In other recent news, Varonis Systems reported impressive first-quarter earnings that exceeded analyst expectations. The company posted adjusted earnings of $0.00 per share, outperforming the anticipated -$0.02, with revenue reaching $136.4 million, surpassing the consensus estimate of $129.92 million. Varonis also saw a significant increase in SaaS revenues, which climbed to $88.6 million from $34.0 million in the previous year, contributing to a 19% year-over-year growth in annual recurring revenue (ARR) to $664.3 million. Following these results, Varonis revised its full-year ARR guidance upward, anticipating growth between 16% and 17%.
Cantor Fitzgerald maintained an Overweight rating and a $60.00 price target for Varonis, reflecting confidence in the company’s strategic direction and its strong first-quarter performance. Similarly, TD Cowen reiterated a Buy rating with a $59.00 price target, emphasizing Varonis’s robust market position in data security. Additionally, Varonis achieved FedRAMP Authorization for its Data Security Platform, marking a significant milestone that allows federal agencies to utilize its cloud-hosted security solutions.
In corporate governance, Varonis’ stockholders approved the 2025 Employee Stock Purchase Plan and an increase in shares for the 2023 Omnibus Equity Incentive Plan at the annual meeting. These developments indicate a positive trajectory for Varonis, with strong financial performance and strategic advancements in data security solutions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.