Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
Investing.com -- Wells Fargo raised its rating on data security software maker Varonis Systems (NASDAQ:VRNS) to Overweight from Equal-weight, saying the company is well-positioned to benefit from rising adoption of “Agentic AI” technologies.
The brokerage said AI-related demand, greater uptake of Varonis’s managed data detection and response service, and its partnership with Microsoft (NASDAQ:MSFT) could accelerate annual recurring revenue growth to about 18–19% in fiscal 2026 and 2027.
Wells Fargo (NYSE:WFC) also expects revenue growth to outpace consensus forecasts in those years, saying Wall Street is underestimating the conversion of recurring contracts into revenue.
“We believe Varonis has a number of levers to accelerate ARR growth,” analysts at Wells Fargo said.
It now sees revenue reaching $806 million in 2026, up 26% from a year earlier, and $968 million in 2027, a 20% gain.
The bank said Varonis can expand its operating margin to at least 10% in fiscal 2027, helped by improving contribution margins, compared with consensus estimates of 7.4%.
“We believe the company can expand the operating margin to at least 10% in FY27, which adds valuation support”
Wells Fargo lifted its price target to $70 from $51.
“We are upgrading VRNS to OW as we believe the company is well-positioned to capitalize on the growing adoption of Agentic AI,” analysts at Wells Fargo said.