Varonis Systems stock price target raised to $55 from $50 at DA Davidson

Published 13/10/2025, 22:40
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Investing.com - DA Davidson raised its price target on Varonis Systems (NASDAQ:VRNS) to $55.00 from $50.00 on Monday, while maintaining a Neutral rating on the cybersecurity company’s stock. The stock currently trades at $62.42, near its 52-week high of $63.90, according to InvestingPro data.

The research firm noted that Varonis shares have shown significant strength recently, outperforming the iShares Expanded Tech-Software Sector ETF (IGV) by 9% over the past month and by 19% over the past three months, despite still underperforming by 19% over the past year. InvestingPro data shows impressive momentum with a 48.81% return over the past six months.

DA Davidson attributed the recent share price strength to several factors, including increased investor desire for cybersecurity exposure among small and mid-cap investors, outflows from Check Point Software (NASDAQ:CHKP) due to the pending Palo Alto Networks acquisition, and a limited number of compelling small and mid-cap cybersecurity investment options.

The firm’s analysts expressed caution regarding Varonis shares, citing "increasingly frothy valuation" as a concern, along with "a continued flow of mixed feedback from recent checks."

Despite raising the price target, DA Davidson maintained its Neutral stance on Varonis Systems , indicating no change to its fundamental view of the company.

In other recent news, Varonis Systems announced the launch of Varonis Interceptor, an AI-powered email security solution aimed at combating sophisticated phishing attacks. The product employs advanced technologies such as natural-language processing and computer vision to identify and neutralize threats in real time. Meanwhile, Cantor Fitzgerald maintained an Overweight rating on Varonis Systems, highlighting the company’s strong second-quarter 2025 performance, which exceeded consensus expectations in revenue, annual recurring revenue, and free cash flow. The company is accelerating its transition to a Software-as-a-Service model, with SaaS now comprising 69% of its annual recurring revenue.

UBS raised its price target for Varonis Systems to $70, citing positive feedback from customer and partner interactions that support the company’s competitive position and SaaS expansion. Truist Securities reiterated its Buy rating with a $60 price target, expressing an "incrementally positive" outlook after meetings with Varonis executives. Additionally, B.Riley initiated coverage with a Buy rating and set a price target of $80, recognizing the increasing demand for data security solutions. These developments reflect the ongoing interest and confidence in Varonis Systems from various analyst firms.

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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