Cantor Fitzgerald reiterates Overweight rating on Varonis Systems stock

Published 22/07/2025, 13:08
Cantor Fitzgerald reiterates Overweight rating on Varonis Systems stock

Investing.com - Cantor Fitzgerald has reiterated an Overweight rating on Varonis Systems (NASDAQ:VRNS) with a price target of $60.00, representing potential upside from the current price of $52.13. According to InvestingPro data, analyst targets for the stock range from $39 to $65, with the company showing impressive gross profit margins of 82.29%.

The firm maintained its positive outlook on the data security software provider, citing the company’s accelerating Annual Recurring Revenue (ARR) growth and increasing pace of Software-as-a-Service (SaaS) adoption. This optimism is supported by the company’s solid revenue growth of 13.34% over the last twelve months.

Cantor Fitzgerald based its $60 price target on a 2026 estimated Enterprise Value to Sales (EV/Sales) multiple of 10.5x, which exceeds the peer group average of 7.9x for the same period.

The research firm justified the premium valuation by pointing to Varonis Systems’ leading position in a category that is growing in strategic importance to organizations.

Cantor Fitzgerald also highlighted the company’s strong go-to-market strategy and execution as key factors supporting its continued Overweight rating.

In other recent news, Varonis Systems has been the subject of several developments. Wells Fargo (NYSE:WFC) raised its price target for Varonis Systems to $51, while maintaining an Equal Weight rating. This adjustment comes ahead of the company’s second-quarter 2025 earnings report. Meanwhile, Cantor Fitzgerald reaffirmed an Overweight rating with a $60 price target, citing Varonis’ strategic industry positioning and expected growth in Software (ETR:SOWGn) as a Service (SaaS) and annual recurring revenue. TD Cowen also maintained a Buy rating and set a $59 target, highlighting Varonis’s strong position in data protection as enterprises increasingly value their data.

In product news, Varonis announced that its data security solution is now available in the AWS Marketplace, allowing for easier access and deployment by customers. Additionally, Varonis has extended its Data Security Platform to integrate with OpenAI’s ChatGPT Enterprise Compliance API. This integration aims to help organizations monitor AI interactions and detect potential data security risks. These recent developments reflect Varonis Systems’ ongoing efforts to enhance its product offerings and strategic positioning in the data security sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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