TD Cowen analyst Shaul Eyal has reiterated their bullish stance on VRNS stock, giving a Buy rating on February 3.
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Shaul Eyal’s rating is based on Varonis Systems’ strong performance in the fourth quarter of 2024, where the company demonstrated impressive growth in its Annual Recurring Revenue (ARR), particularly driven by an accelerated transition to a SaaS model. This transition has been unfolding faster than anticipated, with SaaS now accounting for the majority of the company’s ARR, indicating a strategic shift that is setting the company on a path for future success.
Additionally, the company has effectively managed to convert a significant portion of its customers to the SaaS platform, which is expected to further drive revenue growth and improve sales efficiency. The anticipated completion of this transition by the end of 2025, well ahead of schedule, is likely to position Varonis Systems for enhanced performance, supporting Eyal’s Buy rating and the $65 target price.
According to TipRanks, Eyal is a top 25 analyst with an average return of 27.3% and a 70.36% success rate. Eyal covers the Technology sector, focusing on stocks such as Fortinet, Palo Alto Networks, and Check Point.
In another report released on February 3, J.P. Morgan also maintained a Buy rating on the stock with a $55.00 price target.