Varonis Systems stock price target raised to $51 by Wells Fargo

Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Varonis Systems (NASDAQ:VRNS) to $51.00 from $46.00 on Monday, while maintaining an Equal Weight rating on the data security company’s stock. The new target aligns closely with the current trading price of $51.30, though InvestingPro analysis suggests the stock is trading above its Fair Value.

The price target adjustment comes ahead of Varonis Systems’ scheduled second-quarter 2025 results, which will be reported on Tuesday, July 29, after market close. The company, currently valued at $5.7 billion, has maintained impressive gross profit margins of 82% and achieved 13% revenue growth over the last twelve months.

Wells Fargo noted that the Data Protection market is gaining momentum due to Agentic AI roll-outs, a trend that could benefit Varonis in the longer term. InvestingPro subscribers can access 8 additional key insights about Varonis’s market position and growth potential in their comprehensive Pro Research Report.

The firm’s analyst checks were described as "somewhat mixed," but after speaking with additional, larger resellers, Wells Fargo developed "a more constructive view on the outlook for Varonis."

The company is reportedly "starting to see an uptick in demand trends," partially driven by increasing deployments of Agentic AI solutions, though Wells Fargo is taking a "wait-and-see" approach while maintaining its Equal Weight rating.

In other recent news, Varonis Systems announced that its data security solution is now available in the AWS Marketplace, specifically within the AI Agents and Tools category. This development allows customers to easily access and deploy Varonis’s platform using their AWS accounts, streamlining the procurement process. Additionally, Varonis has extended its Data Security Platform to integrate with OpenAI’s ChatGPT Enterprise Compliance API, aiming to help organizations monitor AI interactions and identify sensitive data uploads. In the realm of stock analysis, Cantor Fitzgerald has maintained an Overweight rating for Varonis, with a $60 price target, reflecting confidence in the company’s growth and strategic positioning. Similarly, TD Cowen has reiterated a Buy rating, setting a $59 price target, emphasizing Varonis’s strong market position and transition to a SaaS model. Furthermore, Varonis’s stockholders have approved several proposals at the company’s 2025 Annual Meeting, including the 2025 Employee Stock Purchase Plan and an increase in shares for the 2023 Omnibus Equity Incentive Plan. All board nominees were elected to serve until the 2028 Annual Meeting, and the advisory vote on executive compensation received approval. The appointment of Kost Forer Gabbay & Kasierer as the independent registered public accounting firm was also ratified.

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