B.Riley initiated coverage on Varonis Systems Inc. (NASDAQ:VRNS) with a Buy rating and an $80 price target, highlighting rising demand for data security solutions and upside potential from its SaaS transition.
The analysts said discussions with industry contacts confirmed robust demand drivers in the data security market, and Varonis was well positioned with differentiated technology that not only detects and prevents breaches but also automates remediation.
Investor expectations were reset earlier this year when Varonis slowed growth forecasts due to the ongoing migration of its customer base to SaaS. However, B.Riley said once the transition is completed by the end of fiscal 2025, the company should be positioned for accelerating revenue and earnings growth.
