Varonis Systems, Inc. (NASDAQ: VRNS) has been assigned an average target price of $59.79 by a group of analysts covering the company, according to MarketBeat. Among the twenty-two research firms evaluating Varonis, one has given the stock a sell rating, five have rated it as hold, and sixteen analysts have issued buy ratings, indicating a generally positive outlook.
In recent reports, several brokerage firms have adjusted their price targets for Varonis Systems. The Royal Bank of Canada revised its price objective from $72.00 to $60.00, maintaining an “outperform” rating as of October 29, 2023. Similarly, Piper Sandler lowered its target from $50.00 to $45.00 with a “neutral” rating. Citigroup took a more conservative stance by reducing its target from $58.00 to $40.00, also assigning a “neutral” rating. Cantor Fitzgerald set a price target of $60.00 and provided an “overweight” rating on the same day. Notably, Zacks Research upgraded Varonis from a “strong sell” to a “hold” rating on November 11, 2023.
Varonis Systems’ Current Market Performance
On Wednesday, Varonis opened trading at $33.35. The stock has demonstrated some volatility, with a fifty-day simple moving average of $38.88 and a two-hundred-day moving average of $49.39. The company’s market capitalization stands at $3.93 billion, with a price-to-earnings ratio of -32.61 and a beta of 0.64. Varonis has experienced a one-year low of $30.02 and a high of $63.90 during this period.
The cybersecurity firm released its latest earnings results on October 28, 2023, reporting earnings per share (EPS) of $0.06, matching analysts’ expectations. Revenue for the quarter reached $161.58 million, slightly below the consensus estimate of $166.47 million. Varonis also reported a negative net margin of 18.82% and a negative return on equity of 21.91%. Year-on-year, the company’s revenue increased by 9.1%, although EPS fell from $0.10 in the same quarter the previous year. For Q4 2025, Varonis has provided guidance suggesting EPS may range between $0.020 and $0.04. Analysts anticipate that Varonis will record an EPS of -0.83 for the current fiscal year.
Company Overview and Strategic Focus
Founded in 2005 and headquartered in New York City, Varonis Systems specializes in cybersecurity, focusing on the protection and management of unstructured data. The company’s flagship offering, the Data Security Platform, utilizes advanced analytics to monitor file systems, email servers, collaboration tools, and cloud storage solutions. By continuously mapping data permissions and user behavior, Varonis helps organizations detect insider threats, ensure compliance, and address data exposure in real time.
As Varonis continues to refine its services and expand its global customer base, which spans various sectors including finance, healthcare, media, manufacturing, and government, it remains a pivotal player in the cybersecurity landscape. The company’s ability to adapt to market conditions and respond to analyst feedback will be crucial as it navigates its growth strategy in the coming quarters.
