Varonis initiated with an Underweight at JPMorgan

JPMorgan analyst Brian Essex initiated coverage of Varonis with an Underweight rating and $25 price target. While the company’s software-as-a-service transition should yield product enhancements and uplift over time, the full transition will take several years and compress margins, the analyst tells investors in a research note. Near term, Varonis faces additional headwinds including high foreign exposure, limited sales channel breadth and competition, the firm contends.