Truist Securities reiterates Buy rating on Varonis Systems stock, maintains $60 price target

Investing.com - Truist Securities has reiterated its Buy rating on Varonis Systems (NASDAQ:VRNS) stock, maintaining a $60.00 price target following meetings with company executives. The target aligns with broader analyst sentiment, as shown by InvestingPro data, with price targets ranging from $47 to $80.

The firm’s analyst Junaid Siddiqui expressed an "incrementally positive" outlook on the cybersecurity company’s competitive positioning after meeting with Varonis CFO Guy Melamed and VP of Investor Relations Tim Perz at the Truist Securities Technology Symposium last week. The company’s strong market position is reflected in its impressive 81.46% gross profit margins and market capitalization of $6.35 billion.

Truist Securities highlighted several factors supporting its positive stance, including Varonis’ recent acquisition of SlashNext and its MDDR (Metadata, Detection, and Response) solution, which together strengthen the company’s security offerings.

The firm also noted Varonis’ increasing adoption of artificial intelligence and growing market awareness of data security needs as additional tailwinds for the company’s growth prospects.

Truist Securities expressed confidence that Varonis will achieve Annual Recurring Revenue (ARR) growth exceeding 20% and realize margin benefits as customers increasingly adopt the company’s Software-as-a-Service (SaaS) platform.

In other recent news, Varonis Systems has reported strong second-quarter 2025 results, exceeding consensus expectations in revenue, annual recurring revenue (ARR), and free cash flow. The company is making significant strides in its Software-as-a-Service (SaaS) transition, with SaaS now accounting for 69% of ARR and targeting 82% by year-end. Analysts have responded positively, with Cantor Fitzgerald maintaining an Overweight rating and raising its price target to $63.00. RBC Capital also increased its price target to $64.00, maintaining an Outperform rating, while Needham raised its target to $70.00, citing strong quarterly performance. B.Riley initiated coverage with a Buy rating and a price target of $80.00, highlighting robust demand for data security solutions. These developments indicate a positive outlook from analysts regarding Varonis Systems’ strategic direction and performance.

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